In a recent turn of events, Ethereum (ETH) – the world’s second-largest cryptocurrency by market capitalization, extended its losses and dipped to test the $2,380 support zone. While the digital asset is currently in recovery mode, it is facing challenges in accelerating its pace for a move above the crucial $2,520 – $2,550 resistance levels, making the market volatile and investors cautious.
Ethereum began its recovery wave from the $2,380 mark after trading as low as $2,379. This marked a minor increase above the $2,420 level, with the bulls pushing the price above the $2,500 resistance. However, they struggled near the $2,520 level, indicating a tough resistance zone for the cryptocurrency.
As it stands, Ethereum’s price is trading below the $2,500 mark and the 100-hourly Simple Moving Average, a critical indicator for short-term price predictions. Furthermore, there is a short-term rising channel forming with support at $2,480, as per the hourly chart of ETH/USD data feed via Kraken.
On the upside, Ethereum seems to be encountering resistance near the $2,520 level and the 100-hourly Simple Moving Average. This is in close proximity to the 76.4% Fib retracement level of the downward wave from the $2,562 swing high to the $2,379 low. The first major resistance is near the $2,550 mark, with the primary resistance forming near $2,600.
Should Ethereum manage a clear move above the $2,600 resistance, it might propel the price towards the $2,650 resistance. An upside break above the $2,650 resistance could potentially trigger further gains in the coming sessions, potentially driving Ether towards the $2,750 resistance zone.
However, if Ethereum fails to clear the $2,520 resistance, it could trigger another decline. Initial support on the downside is near the $2,480 mark, with the first major support sitting near the $2,420 zone. A clear shift below this support could push the price towards $2,380. Further losses could send the price spiralling towards the $2,320 support level in the near term, with the next key support sitting at $2,250.
As far as technical indicators are concerned, the MACD for ETH/USD is losing momentum in the bullish zone, and the RSI for ETH/USD is now near the 50 zone.
In summary, Ethereum’s price dynamics are currently in a critical phase. Whether it will break the resistance and aim higher or decline further, is something that only time will tell. The market participants are cautiously observing the price movements and the technical indicators, waiting to make their next move.
