There has been a recent downturn in the price of Ethereum from the resistance zone of $2,450. It’s now in a holding pattern, attempting to consolidate losses. Meanwhile, it’s encountering increased selling pressure below the $2,450 range.
The price is currently trading under the $2,500 mark and below the 100-hourly Simple Moving Average, a commonly used indicator by traders and analysts to identify price trends. A connecting bearish trend line has formed with resistance at $2,390 on the hourly chart of ETH/USD, according to data fed from Kraken, a popular cryptocurrency exchange.
This downward trend could potentially change if Ethereum manages to establish itself above the $2,400 and $2,500 milestones.
Ethereum, like its more well-known counterpart, Bitcoin, was unsuccessful in breaking through the $2,550 resistance zone, triggering a new drop in price. The cryptocurrency sped up its descent below the $2,500 and $2,450 support levels, positioning it in a more bearish zone.
The decline exceeded 5%, with Ethereum even trading below the $2,320 support zone. This downward momentum resulted in a low of $2,251. Currently, Ethereum is in a phase of consolidating these losses.
Despite a minor recovery wave above the 23.6% Fibonacci retracement level from the downward move that spanned $2,519 to $2,251, Ethereum is still trading below the $2,450 mark and the 100-hourly Simple Moving Average.
On the upside, Ethereum appears to be encountering resistance near the $2,380 level, or the 50% Fibonacci retracement level from the high to low swing. The first significant resistance is around $2,420, with the main resistance forming near $2,450.
A clear upward move past the $2,450 resistance could potentially push Ethereum towards the $2,500 resistance. If it breaks through this level, we might witness more gains in the upcoming sessions. In this scenario, Ethereum could ascend towards the $2,550 or even $2,620 resistance zones in the near term.
However, if Ethereum is unsuccessful in surpassing the $2,500 resistance, it could trigger another decline. Initial support on the downside is located near the $2,315 mark, with the first major support near the $2,250 zone.
A clear move below the $2,250 support might push Ethereum towards the $2,200 support. Any further losses could potentially drive the price towards the $2,120 support level in the near term, with the next key support situated at $2,050.
In terms of technical indicators, the Moving Average Convergence Divergence (MACD) for ETH/USD is gaining momentum in the bearish zone, while the Relative Strength Index (RSI) is now below the 50 zone, indicating increased selling pressure.
With a major support level at $2,250 and a major resistance level at $2,500, the coming days will provide a clearer picture of Ethereum’s market trajectory.
