The Ethereum market has been experiencing a challenging phase as the price initiates a fresh decline below the critical $2,550 support level. While Ethereum is currently facing struggles, there remains a plausible path to recovery if key resistance zones are successfully breached.
Recent Ethereum Price Movement
- Ethereum commenced a fresh decline from the $2,650 resistance zone.
- The price is trading below $2,500 and the 100-hourly Simple Moving Average.
- There was a break above a connecting bearish trend line with resistance at $2,450 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a recovery wave if it surpasses the $2,500 and $2,550 resistance levels.
Ethereum Price Takes a Hit
The Ethereum price faced difficulties in maintaining its position above the $2,550 mark, triggering a fresh decline similar to Bitcoin’s trajectory. As a result, ETH dropped below both the $2,520 and $2,500 levels, eventually testing the $2,420 support zone. A recent low was marked at $2,411, prompting the price to attempt a rebound.
There was a notable move above the $2,450 resistance zone as the price climbed past the 23.6% Fibonacci retracement level, calculated from the $2,582 swing high down to the $2,411 low. Moreover, a significant break occurred above a connecting bearish trend line with resistance at $2,450 on the hourly ETH/USD chart.
Currently, Ethereum is trading below the $2,500 mark and its 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,500 level and the 50% Fibonacci retracement level from the $2,582 swing high to the $2,411 low. The initial major resistance is located near the $2,520 level, with the primary resistance forming around $2,550.
A decisive move above the $2,550 resistance could propel the price towards the $2,600 resistance. Should an upward break occur above the $2,600 level, it may trigger additional gains in subsequent trading sessions, potentially driving Ether towards the $2,650 resistance zone.
Potential for Another Decline in ETH?
In the event that Ethereum fails to overcome the $2,500 resistance, the price may embark on another decline. The initial support on the downside is positioned near the $2,450 level, with the first major support residing in the $2,400 zone.
A clear downward move below the $2,400 support could push the price towards $2,350. Any further losses might lead to a descent towards the $2,320 support level in the short term, with the next significant support positioned at $2,250.
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 above the 50 zone.
Major Support Level – $2,420
Major Resistance Level – $2,500
