The Ethereum market has witnessed a significant shift as the cryptocurrency’s price embarks on a downward trajectory, retreating from the $2,720 resistance level. This development has raised concerns among investors and traders alike, as Ethereum once again finds itself trading below $2,550. In the short term, ETH may encounter obstacles in initiating a fresh uptrend.
Key Developments in Ethereum’s Price Movement
- Ethereum experienced a noticeable decline, retreating from the $2,720 resistance zone.
- Currently, the cryptocurrency is trading below $2,550 and the 100-hourly Simple Moving Average, indicating potential bearish momentum.
- A significant break occurred below a crucial bullish trend line, with support previously situated at $2,560 on the hourly ETH/USD chart, sourced from Kraken.
- If ETH fails to maintain its position above the $2,450 support zone, further losses could be anticipated.
Ethereum Price Plummets Below $2,550
Recent market activities saw Ethereum’s price struggle to sustain its position above $2,650, resulting in a fresh decline reminiscent of Bitcoin’s movement. The cryptocurrency faced a pronounced drop below the $2,620 and $2,600 benchmarks, highlighting the intensifying bearish sentiment.
A pivotal moment in Ethereum’s price action was the breach of a key bullish trend line, formally supported at $2,560 on the hourly ETH/USD chart. This development was compounded by the price plummeting below the 50% Fibonacci retracement level, calculated from the upward swing low of $2,488 to the peak of $2,719. The persistent bearish pressure further pushed Ethereum below the $2,550 threshold.
Currently, Ethereum is trading beneath both the $2,550 mark and the 100-hourly Simple Moving Average. The cryptocurrency is edging closer to the $2,460 support zone, aligning with the 61.8% Fibonacci retracement level derived from the prior upward wave. Despite these challenges, Ethereum faces resistance around the $2,550 level. The primary resistance emerges near $2,580, while significant resistance is forming at $2,610. A decisive movement beyond the $2,610 mark could propel the price toward the $2,650 resistance level.
An upward breakthrough above $2,650 may pave the way for additional gains in forthcoming sessions. In such a scenario, Ethereum could target the $2,720 resistance zone, offering a glimmer of hope for bullish traders.
Potential for Further Decline in Ethereum?
Should Ethereum fail to overcome the $2,550 resistance, the probability of continued downward movement remains high. Initial support on this downward path is situated near the $2,480 level, with the first major support zone located around $2,450. A definitive move below this $2,450 support could potentially drive the price toward $2,380.
If the bearish momentum persists, additional losses could see Ethereum approaching the $2,320 support level in the near term. The subsequent key support area is identified at $2,250, serving as a critical threshold for traders to monitor.
Technical Indicators
Hourly MACD: The MACD for ETH/USD is gaining momentum within the bearish territory, signaling potential further declines.
Hourly RSI: The RSI for ETH/USD currently resides below the 50 mark, indicating an overall bearish sentiment.
Support and Resistance Levels
Major Support Level: $2,450
Major Resistance Level: $2,550
