Ethereum Faces Correction Towards $2,550 Support Zone
After struggling to break above the $2,700 resistance level, Ethereum is facing a downside correction similar to Bitcoin. The price has dropped below $2,650 and is currently trading below the 100-hourly Simple Moving Average. In addition, a connecting bullish trend line with support at $2,620 was breached on the hourly chart of ETH/USD, indicating a bearish sentiment in the market.
- Ethereum price failed to extend gains above the $2,700 resistance zone.
- The price is now trading below $2,650 and the 100-hourly Simple Moving Average.
- A bullish trend line with support at $2,620 was broken on the hourly chart of ETH/USD.
- The cryptocurrency could see further downside movement if it fails to hold above the $2,550 support zone.
ETH Price Corrects Lower
As Ethereum struggles to maintain its bullish momentum, the price has retraced below the $2,650 level. The decline below the $2,620 and $2,600 levels indicated a weakening trend in the market. Moreover, the breach of the bullish trend line suggested that sellers are gaining control over the price action.
- The price declined below the 23.6% Fib retracement level from the recent swing low to high.
- A connecting bullish trend line with support at $2,620 was broken on the hourly chart.
- Ethereum is currently trading below the key $2,650 level and the 100-hourly Simple Moving Average.
- Bulls are attempting to defend the $2,500 support zone to prevent further losses.
Potential Upside Hurdles for Ethereum
While Ethereum faces challenges in maintaining its upward momentum, there are key resistance levels that could cap any potential upside moves. If the price manages to climb higher, it could encounter hurdles near the $2,600 level and the 100-hourly Simple Moving Average. The first major resistance is positioned around $2,625, followed by another significant barrier near $2,700.
- The immediate resistance is near $2,625, with a possible push towards $2,700 in the cards.
- A break above $2,720 could signal a move towards the $2,880 resistance level.
Downside Risks for ETH
In case Ethereum fails to surpass the $2,625 resistance level, it might face renewed selling pressure. The initial support on the downside is near $2,520, followed by the 50% Fib retracement level. The critical support zone is at $2,500, with a potential breakdown leading to a test of the $2,450 level.
- If the price continues lower, it could target the $2,320 support level.
- The next key support is located at $2,250, indicating a significant level for buyers.
Technical Indicators for Ethereum
- Hourly MACD – The MACD for ETH/USD is showing bearish momentum.
- Hourly RSI – The RSI for ETH/USD is below the 50 level, signaling a bearish trend.
Overall, Ethereum is facing a challenging period as it struggles to maintain its bullish momentum. The price action suggests a potential correction towards the $2,550 support zone, with key resistance levels at $2,625 and $2,700 acting as hurdles for any upside moves.
Hot Take: Ethereum’s Battle with Key Levels
As Ethereum navigates through a volatile market, the battle for key levels continues. Traders should monitor the $2,625 resistance level closely, as a breakout could pave the way for a move towards $2,700. However, if the support at $2,500 fails to hold, Ethereum could face further downside towards $2,450 and beyond. Technical indicators signal a bearish trend, indicating a challenging path ahead for ETH.
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