Ethereum Struggles to Break Resistance Levels
Ethereum’s price is facing challenges in clearing the $2,280 and $2,300 resistance levels. It is currently trading below the $2,300 mark and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a significant bearish trend line is forming with resistance near $2,280.
Ethereum Price Faces Rejection
Similar to Bitcoin, Ethereum experienced a recovery wave above the $2,120 level. It successfully surpassed the $2,200 and $2,220 resistance levels. However, it faced strong selling pressure near $2,300 and the 100-hourly Simple Moving Average.
The price failed to clear the 76.4% Fib retracement level of its downward move from the $2,430 swing high to the $1,860 low. It is now struggling to break through the $2,280 and $2,300 resistance levels. Additionally, a major bearish trend line is forming with resistance near $2,280 on the hourly chart of ETH/USD.
Although Ethereum is currently trading below $2,300 and the 100-hourly Simple Moving Average, it remains above the 23.6% Fib retracement level of its upward move from the $1,860 swing low to the $2,289 high.
On the upside, resistance levels are present near $2,280 and the trend line. The first major resistance lies at around $2,300. If there is a close above this level, it could potentially initiate an upward movement towards the next key resistance at approximately $2,400.
Fresh Decline in ETH?
If Ethereum fails to break through the $2,300 resistance, it might experience a fresh decline. Initial support can be found near the $2,185 level.
The first significant support zone is around $2,075 or the 50% Fib retracement level of its upward move from the $1,860 swing low to the $2,289 high. A downside break and close below $2,075 could trigger another steady decline. In such a scenario, Ether might test the $2,000 support level, and further losses could push the price towards $1,860.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is showing a loss of momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD has dropped below the 50 level.
Hot Take: Ethereum’s Struggle to Break Resistance Levels May Indicate a Fresh Decline
Ethereum’s price is currently facing hurdles in surpassing the $2,280 and $2,300 resistance levels. Despite attempting a recovery wave, it failed to break through key resistance points and is now struggling to maintain its upward momentum. If Ethereum remains below the $2,300 resistance zone, it could potentially start a fresh decline. Traders should closely monitor these resistance levels and be cautious of a potential downward movement. On the other hand, if Ethereum manages to clear these resistance levels and closes above $2,300, it may indicate a decent upward move towards higher resistances at $2,400 and beyond.
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