Ethereum Price Battles to Hold Strength: Will Bulls Prevail?

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Ethereum price is currently undergoing a correction phase, falling below the $2,650 resistance level. As it hovers near the $2,600 support, the cryptocurrency may encounter several hurdles in its path. Below, we break down the key factors influencing Ethereum’s price movement.

Key Points

Ethereum initiated a downside correction, falling below the $2,650 zone.

The price is currently trading below $2,620 and the 100-hourly Simple Moving Average (SMA).

There is a significant bearish trend line forming with resistance near $2,630 on the hourly chart of ETH/USD (data feed via Kraken).

The pair must maintain above the $2,550 support to trigger a fresh increase in the near term.

Ethereum Price Takes a Hit

Ethereum’s price faced challenges in sustaining levels above $2,700. Much like Bitcoin, ETH started a downturn, breaking below the $2,650 support level. The decline extended below the $2,600 mark, forming a new low around $2,575. Currently, the price is consolidating its losses, showing a minor recovery above the $2,600 level.

The price managed to climb above the 23.6% Fibonacci retracement level of the downward move from the $2,672 high to the $2,575 low. Despite this, Ethereum is still trading below $2,640 and the 100-hourly Simple Moving Average. On the upside, the price is encountering resistance near the $2,625 level. Additionally, a key bearish trend line is forming with resistance around $2,630 on the hourly chart of ETH/USD.

This trend line aligns closely with the 50% Fibonacci retracement level of the downward movement from the $2,672 high to the $2,575 low. The first significant resistance is near the $2,650 level, followed by another key resistance around $2,665.

Potential Upside Movement

If Ethereum manages to break above the $2,665 resistance, it could signal further gains in upcoming sessions. In this scenario, Ether might aim for the $2,700 resistance zone in the short term, with the next hurdle near the $2,720 or $2,800 levels.

More Losses in ETH?

On the flip side, if Ethereum fails to overcome the $2,630 resistance, it may continue its downward trajectory. Initial support is expected near the $2,600 level, with the first major support sitting around the $2,550 zone. A clear break below the $2,550 support could push the price towards the $2,500 mark. Any additional losses might drive the price further down to the $2,450 support level in the near term, with the next key support at $2,320.