Is the Bullish Momentum Fading?

Understanding Ethereum’s Recent Price Movement

The Ethereum market has recently experienced a downward trend, with the price dropping below the significant $2,450 mark. Currently, ETH is in a consolidation phase, and it faces challenges in its attempt to recover beyond the $2,425 level. As Ethereum navigates this turbulent phase, it is crucial to understand the factors influencing its price movements and potential paths forward.

Key Price Levels and Trends

Ethereum’s price has seen a continued decline, falling below the $2,400 zone.

The cryptocurrency is trading below the $2,420 mark, positioned beneath the critical 100-hourly Simple Moving Average.

A bearish trend line is forming with resistance around the $2,425 level on the hourly ETH/USD chart.

To initiate a fresh upward movement, the pair must maintain support above the $2,350 level in the near term.

Ethereum Price Holds Support

The Ethereum price has sustained its position in a bearish territory, extending its losses below the $2,550 threshold. Like Bitcoin, ETH breached the $2,450 support level, signaling its entry into a bearish zone. The price further descended below the $2,400 mark, hitting a low near $2,352. As it stands, Ethereum is consolidating its losses, showing minor recovery signs with a move above the $2,365 level.

Despite this minor uptick, Ethereum’s price remains below the 23.6% Fibonacci retracement level, calculated from the $2,655 swing high down to the $2,352 low. The current trading price is below the $2,420 mark and the 100-hourly Simple Moving Average, facing resistance around the $2,425 level due to a connecting bearish trend line on the hourly ETH/USD chart.

Resistance and Potential Upside

The primary resistance Ethereum faces is near the $2,500 mark, which aligns with the 50% Fibonacci retracement level from the $2,655 swing high to the $2,352 low. The subsequent significant resistance is positioned around $2,535. A successful breakout above this resistance could pave the way for further gains in upcoming sessions, potentially driving Ether towards the $2,650 resistance zone. Beyond this, the next resistance hurdles are near the $2,680 and $2,665 levels.

Potential for More Losses?

Should Ethereum fail to surpass the $2,420 resistance, it might continue its downward trajectory. Initial support on this path is located near the $2,350 level, with the first major support zone at approximately $2,320. A decisive move below the $2,320 support could propel the price towards the $2,250 mark. Further declines could eventually lead Ethereum towards the $2,150 support level, with the next critical support at $2,120.