Ethereum Begins Upside Correction from $2,165 Support
Ethereum price experienced a decline below the $2,240 support level, dropping below $2,200 before finding support near $2,165. However, the price has now formed a short-term base and is starting to correct higher.
The recent upside movement saw Ethereum break above a connecting bearish trend line with resistance around $2,235. Nevertheless, the bulls face strong resistance near the $2,240 level. The bears defended the 23.6% Fibonacci retracement level of the downward move from the $2,480 swing high to the $2,165 low.
Currently, Ethereum is trading below both the $2,240 resistance level and the 100-hourly Simple Moving Average. On the upside, it is encountering resistance near $2,240. If it manages to clear this resistance zone, it might initiate a steady increase.
The next major hurdles for Ethereum are expected to be at $2,300 and the 100-hourly Simple Moving Average. If it surpasses these levels, it could test the 50% Fibonacci retracement level at $2,320. The next significant resistance lies near $2,360.
Source: ETHUSD on TradingView.com
Possible Scenario: Another Decline in ETH?
If Ethereum fails to break above the strong resistance at $2,240, it may experience another decline. The initial support on the downside is at around $2,200.
If this support level is broken, Ethereum could potentially drop below the $2,165 zone, leading to a substantial decline. In such a scenario, the price might test the $2,080 support level. Further losses could push the price towards the $2,000 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently showing a loss of momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD has dropped below the 50 level.
Major Support Level – $2,165
Major Resistance Level – $2,240
Hot Take: Ethereum’s Price Struggles to Break Key Resistance Level
Ethereum is facing significant resistance near the $2,240 level as it tries to initiate an upside correction. The bulls are defending the price from further declines, but it remains to be seen if they can break through this resistance barrier. If they succeed, Ethereum may experience a steady increase towards higher levels such as $2,300 and even potentially $2,360. However, if Ethereum fails to overcome this resistance, it could face another round of selling pressure and decline towards key support levels at $2,200 and $2,165. Traders should closely monitor these levels to determine the next direction of Ethereum’s price movement.
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