Ethereum, the second-largest cryptocurrency by market capitalization, recently experienced a significant upward movement, surpassing the $2,500 mark. As the price begins to correct, understanding the key support and resistance levels becomes crucial for traders and investors. In this analysis, we delve into the recent price actions and explore the potential future movements of Ethereum.
Ethereum Price Corrects Gains
Ethereum price achieved a notable breakthrough above the $2,400 level, successfully surpassing the $2,450 resistance and entering a positive zone similar to Bitcoin. This upward momentum allowed ETH to climb beyond the $2,500 resistance zone, signaling a potential bullish trend. However, the market dynamics shifted as bears became active above the $2,500 mark, leading to a high formation at $2,519 and initiating a downside correction.
The price experienced a dip below the crucial $2,450 support level, falling beneath the 23.6% Fibonacci retracement level of the prior upward move from the $2,311 swing low to the $2,519 high. Additionally, Ethereum faced a break below a key bullish trend line with support at $2,450 on the hourly chart of ETH/USD, according to Kraken data.
Currently, Ethereum is trading below $2,450 and the 100-hourly Simple Moving Average. Despite this, the bulls are working to protect the 50% Fibonacci retracement level of the upward move from the $2,311 swing low to the $2,519 high. On the upside, resistance appears formidable near the $2,450 level. A decisive break above this resistance could propel the price toward the $2,500 mark once again.
An upward breach of the $2,500 resistance may pave the way for further gains in the near future. Should this occur, Ether could target the $2,580 resistance zone, with the next significant hurdle positioned around the $2,650 or $2,665 levels.
Potential for More Losses in ETH?
In the event that Ethereum struggles to surpass the $2,450 resistance, a new decline may unfold. Initial support on the downside is anticipated near the $2,420 level, with the first major support zone around $2,400. A clear descent below the $2,400 support might drive the price down toward $2,320. Continued losses could potentially push the price further to the $2,250 support level, with a subsequent key support area at $2,120.
Technical Indicators
- Hourly MACD – The MACD for ETH/USD is exhibiting a loss of momentum within the bullish zone.
- Hourly RSI – The RSI for ETH/USD has dipped below the 50 zone, indicating potential bearish pressure.
- Major Support Level – $2,400
- Major Resistance Level – $2,450
