The Ethereum price is currently gaining momentum below the $2,550 resistance level. Although ETH is trading above $2,500, it faces challenges in recovering past the $2,550 mark. Let’s delve into the details and understand the price dynamics of Ethereum.
Key Points
- Ethereum initiated a downside correction below the $2,550 resistance zone.
- The price is currently trading below $2,520 and the 100-hour Simple Moving Average.
- A short-term consolidation pattern is forming with resistance around $2,500 on the hourly ETH/USD chart (data feed via Kraken).
- To trigger a fresh increase in the short term, the pair must remain above the $2,420 support level.
Ethereum Price Dives 5%
Ethereum’s price has remained in a bearish zone, extending losses below the $2,600 level. ETH dipped below the $2,550 support, similar to Bitcoin, entering a bearish zone. Additionally, there was a move below the $2,500 level, forming a low near $2,413.
Currently, the price is consolidating its losses and has seen a minor increase above the $2,450 level. Ethereum climbed above the 23.6% Fibonacci retracement level of the downward move from the $2,655 swing high to the $2,413 low. However, the price is trading below $2,520 and the 100-hour Simple Moving Average.
On the upside, Ethereum faces hurdles near the $2,520 level. There is also a short-term consolidation pattern forming with resistance at $2,500 on the hourly ETH/USD chart. The first major resistance is near the $2,535 level, which aligns with the 50% Fibonacci retracement level of the downward move from the $2,655 swing high to the $2,413 low. The next key resistance is around $2,550.
An upside break above the $2,550 resistance could pave the way for more gains in the coming sessions. In such a scenario, Ether might rise towards the $2,620 resistance zone in the near term, with the next hurdle near the $2,650 or $2,665 level.
Potential for More Losses in ETH?
If Ethereum fails to clear the $2,520 resistance, it could continue its downward movement. The initial support on the downside is near the $2,440 level, with the first major support sitting around the $2,420 zone.
A decisive move below the $2,420 support might push the price towards $2,350. Further losses could send the price towards the $2,250 support level in the near term, with the next key support at $2,120.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $2,420
Major Resistance Level – $2,550
