After a sharp decline below the $2,700 level, Ethereum price is attempting to recover from the $2,500 zone. If it successfully clears the $2,740 resistance zone, it could gain bullish momentum. Currently, Ethereum’s price is trading under $2,700 and the 100-hourly Simple Moving Average, suggesting that the altcoin is in a bearish phase in the short term.
The latest decline came after Ethereum failed to clear a $2,920 resistance, similar to Bitcoin’s price movement. This led to a drop below the $2,800 and $2,700 support levels, pushing Ethereum into a short-term bearish zone.
Following the dip, Ethereum’s price tested the 50% Fib retracement level of the upward wave from the $2,125 swing low to the $2,922 high, with buyers appearing near the $2,525 zone. The price is now attempting a fresh increase above the $2,600 level, even though a bearish trend line with resistance at $2,700 is forming on the hourly chart of ETH/USD.
On the upside, Ethereum’s price seems to be facing resistance near the $2,700 level. The first major resistance hovers around the $2,740 level, with the main resistance forming near $2,850 or $2,910. If Ethereum manages to clear the $2,910 resistance, it might pave the way for a move toward the $2,950 resistance.
Moreover, if Ethereum breaks the $2,950 resistance level, it could lead to further gains in the coming sessions. In such a case, Ether might rise toward the $3,000 resistance zone or even reach $3,050 in the near term.
However, if Ethereum fails to clear the $2,700 resistance, it could trigger another decline. Initial support on the downside is near the $2,600 level, with the first major support being near the $2,525 zone. If Ethereum’s price drops below this support, it could push the price toward the $2,440 support or the 61.8% Fib retracement level of the upward wave from the $2,125 swing low to the $2,922 high. Any further losses might send the price toward the $2,350 support level in the near term, with the next significant support sitting at $2,240.
Technical indicators show that the MACD for ETH/USD is losing momentum in the bearish zone, while the RSI for ETH/USD is now above the 50 zone. Consequently, the major support level for Ethereum stands at $2,525, while the major resistance level is at $2,700.
