In the volatile world of cryptocurrency, Ethereum is making waves as it consolidates above the $2,500 zone. There is a potential for momentum to shift toward bullish if the currency is able to clear the $2,700 resistance zone. However, the coin has recently experienced a decline below the $2,650 level and is now trading under $2,680. This is notably below the 100-hourly Simple Moving Average, indicating a potential downtrend.
Adding to the complexity of the situation, there is a connecting bearish trend line forming with resistance at $2,690. This data comes from the hourly chart of ETH/USD, sourced from Kraken. Despite these bearish indicators, if the pair can settle above the $2,700 and $2,735 markers, there could be a decent upward movement.
Recent price movements saw Ethereum dip below the $2,800 support zone, mirroring Bitcoin’s movements. It continued to fall, passing below the $2,750 and $2,700 support levels and moving into a short-term bearish zone. The price tested the 50% Fib retracement level of the upward wave from the $2,125 swing low to the $2,922 high before finding support near the $2,500 zone. The price is currently consolidating above this level.
Despite this, Ethereum is facing some obstacles. The currency is struggling to overcome hurdles near the $2,680 level and the $2,735 resistance level. The principal resistance is forming near the $2,800 or $2,820 level. If Ethereum can clear the $2,820 resistance, it might push toward the $2,920 resistance.
Should Ethereum break through the $2,920 resistance, it could potentially call for more gains in the coming sessions. In this case, Ethereum could approach the $3,000 resistance zone or even $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 $2,550 level, with the first major support sitting around the $2,520 zone. A clear move below this could push Ethereum 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. Further losses might send the price towards the $2,365 support level in the near term, with the next key support at $2,250.
Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bearish zone, while the RSI for ETH/USD is now below the 50 zone. The major support level is at $2,525, with the major resistance level at $2,700. As always, the crypto market remains unpredictable, but these indicators provide some insight into potential future movements.
