Ethereum price underwent a correction, dipping and testing the $2,440 support level. It then entered a range-bound trading pattern and encountered obstacles around the $2,550 and $2,585 levels. Despite attempting a fresh increase from the $2,450 level, Ethereum’s price hovered just above $2,500, slinging back and forth along the 100-hourly Simple Moving Average. In an encouraging move, there was a breakout above a bearish trend line, which had resistance near $2,510.
Resistance and Bullish Momentum
In order for Ethereum to gain bullish momentum, it would need to conquer the $2,550 and $2,585 resistance levels. Interestingly, Ethereum’s price initially slid beneath the $2,620 support zone and even dipped below the $2,550 support. However, the bulls were quick to respond, as they became increasingly active near the $2,440 level. This surge in bullish activity led to the formation of a low near $2,469, ultimately resulting in Ethereum’s price entering a range, mirroring the behavior of Bitcoin.
During this range-bound phase, Ethereum’s price incrementally climbed above the $2,500 level. It successfully surpassed the 50% Fibonacci retracement level of the recent decline, stretching from the $2,588 swing high to the $2,469 low. Furthermore, a connecting bearish trend line was breached, with resistance near $2,510, exemplifying the positive momentum of Ethereum’s price. At present, Ethereum is trading just above $2,500 and the 100-hourly Simple Moving Average.
The immediate challenge Ethereum faces is resistance near the $2,540 level, which constitutes the 61.8% Fibonacci retracement level of the recent decline from the $2,588 swing high to the $2,469 low. Should Ethereum successfully clear this level, the next significant hurdle is near $2,585. Surpassing this resistance level could potentially initiate a substantial increase, taking Ethereum’s price closer to the $2,650 level. Ethereum’s main resistance level is now forming near $2,720, and a breakthrough could indicate the start of another noteworthy surge. Furthermore, Ethereum could potentially reach the $2,780 zone before approaching the key resistance at $2,880.
On the other hand, if Ethereum fails to overcome the $2,585 resistance, it may endure another decline. Initial support lies close to the $2,495 level, followed by a key support zone at $2,445. A break below the $2,445 support level would likely propel the price lower, leading Ethereum to test the $2,380 support level. In an extreme downturn scenario, the price might even dip toward $2,320.
Technical Indicators
Examining the technical indicators, the MACD for ETH/USD signifies that Ethereum is losing momentum within the bullish zone. The RSI hovers just above the 50 level, suggesting a neutral sentiment among traders.
Overall, Ethereum’s price underwent a correction, but quickly recovered as bulls became more active near the support level. Ethereum’s price is now engaged in range-bound trading, with key resistance levels blocking its upward momentum. Clearing these hurdles could initiate another noteworthy increase, while failing to do so might result in another decline. In any case, Ethereum remains a volatile investment, and conducting thorough research before making any investment decisions is crucial.
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