Ethereum price recently encountered a setback as it started a pullback from the $2,680 resistance level. This decline has put ETH at risk of further downsides if it fails to maintain its position above $2,550.
Looking at the technical indicators, Ethereum is currently trading below $2,650 and the 100-hourly Simple Moving Average. Moreover, there is a key bullish trend line forming with support at $2,610 on the hourly chart of ETH/USD. The situation is further complicated by the fact that the pair could extend losses if it drops below the $2,550 support zone.
Despite an attempt to gain momentum for a move above the $2,680 level, Ethereum struggled to continue the upward trend and instead started a fresh decline below $2,650, mirroring Bitcoin’s movement. The failure to maintain its position above the 23.6% Fib retracement level and the slip below the 100-hourly Simple Moving Average are concerning signs for ETH.
Should Ethereum manage to break through the $2,680 resistance level, it could potentially reach the $2,720 resistance zone. An upside break above this level might propel the price higher toward the $2,880 resistance zone in the near term.
On the flip side, failure to clear the $2,680 resistance level could lead to further downward movement. The initial support on the downside is near $2,620, with the first major support sitting at the $2,600 zone. A clear move below $2,600 might push the price toward $2,550, where bullish support could emerge. However, any additional losses could send the price even lower toward the $2,500 support level, with the next key support at $2,440.
Ethereum’s price movements in the near future remain uncertain. While there is potential for an upward rally if it breaks through key resistance levels, the current technical indicators suggest that a downward spiral is equally likely if the support levels are breached. Investors and traders alike should closely monitor ETH’s price action in the coming days to make informed decisions.
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