Ethereum has recently experienced extended losses, testing the crucial $2,320 support level. However, there are signs of a possible recovery as the cryptocurrency attempts to correct these losses. Traders and investors are closely watching for a fresh increase above the $2,420 resistance level.
- Ethereum has remained under bearish pressure, trading below the $2,360 zone.
- The cryptocurrency is currently priced below $2,420 and the 100-hourly Simple Moving Average.
- A connecting bearish trend line with resistance at $2,420 is forming on the hourly ETH/USD chart.
- For a potential upward trend, maintaining support above the $2,350 level is crucial.
Ethereum Price Aims for an Upside Break
Ethereum’s price struggled to initiate a fresh surge beyond the $2,450 resistance zone. Like Bitcoin, Ethereum remained in a bearish territory, dipping below the $2,365 support area. This decline also pushed the price below the $2,350 mark, testing the $2,320 support zone.
Currently, Ether is recovering from a low of $2,329. Recent movements saw the price rise above the $2,350 and $2,365 levels, climbing past the 23.6% Fibonacci retracement level of the downward wave from the $2,468 swing high to the $2,329 low point. Despite these gains, Ethereum’s price is still trading below $2,420 and the 100-hourly Simple Moving Average, facing resistance around the $2,420 level.
This resistance coincides with the 61.8% Fibonacci retracement level of the previous downward wave. A decisive move beyond $2,420 could propel the price towards the $2,450 resistance zone, paving the way for further gains.
Should Ethereum break through this resistance, it could target the $2,500 resistance zone in upcoming sessions. The next significant obstacle may emerge near the $2,550 or $2,560 levels.
Potential for More Losses in ETH?
If Ethereum fails to breach the $2,420 resistance, the cryptocurrency might face another downward slide. The initial support on the downside is located around the $2,380 level, with the first major support zone near $2,350.
A definitive breakdown below the $2,350 support could push Ethereum’s price towards the $2,320 level. If the selling pressure intensifies, the next target for sellers might be the $2,265 support area, followed by a critical support level at $2,220.
Technical Indicators
Hourly MACD: The MACD for ETH/USD is gaining momentum in the bullish zone, indicating potential upward movement.
Hourly RSI: The RSI for ETH/USD is currently above the 50 zone, suggesting a positive sentiment.
Major Support Level: $2,320
Major Resistance Level: $2,420
