In recent trading sessions, Ethereum has experienced a series of losses, dipping to test the crucial $2,350 support level. Currently, ETH is in a consolidation phase, setting the stage for a potential upward move beyond the $2,400 resistance. Let’s delve into the details of Ethereum’s recent price movements and explore the possible future scenarios.
Key Observations on Ethereum’s Price Movement
- Ethereum initiated a downward correction, slipping below the critical $2,400 zone.
- The cryptocurrency is currently trading slightly above $2,420, maintaining its position near the 100-hourly Simple Moving Average.
- A short-term ascending channel with support at $2,425 was breached on the ETH/USD hourly chart, based on data from Kraken.
- To initiate a new upward trend, the pair must maintain its position above the $2,350 support level in the near term.
Ethereum Price Dips Further
Ethereum’s price struggled to initiate a fresh rally above the $2,500 resistance zone. Like Bitcoin, Ethereum remained under bearish pressure, trading below the $2,420 support zone. The price even fell below the $2,400 level, leading to a breach of a short-term ascending channel with support at $2,425 on the hourly ETH/USD chart. This movement resulted in Ethereum testing the $2,350 support zone, where a low was established.
Following this dip, Ethereum saw a modest recovery, moving above the $2,350 and $2,360 levels. The price ascended past the 23.6% Fibonacci retracement level of the decline from the $2,467 swing high to the $2,350 low. However, Ethereum is still trading below $2,425 and the 100-hourly Simple Moving Average. On the upside, the price faces significant resistance near the $2,400 mark, which coincides with the 50% Fibonacci retracement level of the aforementioned downward move, standing at $2,410.
A decisive move above the $2,410 resistance could propel Ethereum’s price towards the $2,450 resistance level. If this resistance is successfully breached, further gains could be anticipated, potentially driving Ether’s value towards the $2,550 resistance zone in the near term. The subsequent challenge would likely appear near the $2,600 or $2,620 levels.
Potential for More Losses in ETH?
Should Ethereum fail to surpass the $2,410 resistance, it might face another wave of decline. Initial support on the downside is anticipated near the $2,365 level, with the first major support located around the $2,350 zone. A definitive move below the $2,350 support could push Ethereum’s price towards the $2,300 mark, with further losses potentially driving the price down to the $2,250 support level in the near term. The next critical support is positioned at $2,120.
Technical Indicators
Hourly MACD: The MACD for ETH/USD is showing a decrease in momentum within the bearish territory.
Hourly RSI: The RSI for ETH/USD is currently positioned below the 50 level, indicating a lack of bullish strength.
Support and Resistance Levels
Major Support Level: $2,350
Major Resistance Level: $2,410
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