Current Market Overview
The Ethereum market has recently experienced a downturn, with prices extending losses and testing the crucial $2,380 support zone. However, Ethereum (ETH) has initiated a recovery wave, attempting to regain its momentum. The cryptocurrency is currently facing challenges in surpassing the significant $2,520 level, which remains a critical resistance point for upward movement.
Key Highlights
- Ethereum has started a recovery wave from the $2,380 zone, showing potential for upward momentum.
- The current trading price is below $2,500 and the 100-hourly Simple Moving Average, indicating a cautious market sentiment.
- A short-term rising channel is forming with support established at $2,480 on the hourly chart of ETH/USD, according to data from Kraken.
- A fresh increase is possible if the pair clears the $2,520 and $2,550 resistance levels, paving the way for further gains.
Ethereum Price Aims Higher
Ethereum’s price trajectory has been subjected to significant fluctuations, with a recent decline taking it below the $2,250 mark, distinguishing its movement from Bitcoin. ETH found a temporary bottom at $2,379 before embarking on an upside correction. This recovery saw a modest increase, pushing the price above the $2,420 level.
During this upward correction, Ethereum managed to breach the 50% Fibonacci retracement level, moving from a high of $2,562 to a low of $2,379. Despite these gains, the bulls faced strong resistance near the $2,520 level.
Ethereum is currently trading below $2,500 and the 100-hourly Simple Moving Average. A short-term rising channel is forming, which provides support at $2,480 on the hourly chart of ETH/USD. On the upside, the price is encountering resistance around the $2,520 level and the 100-hourly Simple Moving Average. This area is also near the 76.4% Fibonacci retracement level of the downward wave from $2,562 to $2,379.
Resistance Levels to Watch
The first significant resistance is situated around the $2,550 level. Should Ethereum manage to break through this barrier, the next target would be the $2,600 resistance. A decisive move above $2,600 could propel the price towards the $2,650 resistance, opening the door for additional gains in subsequent sessions. If this scenario unfolds, Ethereum could potentially ascend towards the $2,750 resistance zone, marking a substantial recovery.
Potential for Another Decline in ETH?
While Ethereum shows signs of recovery, the possibility of another downturn cannot be disregarded. Failure to surpass the $2,520 resistance could trigger a fresh decline. Initial support on the downside is located near the $2,480 level, with the first major support found around the $2,420 zone.
A break below the $2,420 support might drive the price towards $2,380. Further losses could lead to a retreat to the $2,320 support level in the near term. The next critical support is positioned at $2,250, which could act as a stronghold for Ethereum against deeper losses.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone, indicating a potential shift in market dynamics.
Hourly RSI – The RSI for ETH/USD is now near the 50 zone, reflecting a neutral market stance with potential for directional movement.
Major Support Level – $2,450
Major Resistance Level – $2,520
