Ethereum, the second-largest cryptocurrency by market capitalization, has extended its losses, dipping below the critical $2,500 support level. The digital coin is currently in a consolidation phase and seems to be encountering difficulties in recovering above the $2,500 resistance level.
The downturn began from the $2,550 resistance zone, with the price now trading below $2,480 and the 100-hourly Simple Moving Average – a key technical indicator used by traders to identify overall trends. Furthermore, a new connecting bearish trend line is forming with resistance at $2,445 on the hourly chart of ETH/USD, according to data feed via Kraken.
However, there is still hope for Ether enthusiasts. If the cryptocurrency manages to surpass the $2,445 and $2,500 resistance levels, it might initiate a recovery wave.
The Ethereum price had a hard time remaining above the $2,500 mark, prompting a fresh decline similar to that seen in Bitcoin. ETH fell below the $2,450 and $2,420 levels, testing the $2,350 support zone. The lowest point recorded was $2,357, but the price is now attempting a recovery with a slight move above the $2,385 resistance zone.
It’s crucial to note that despite the ongoing challenges, Ethereum price is showing signs of resilience. The price tested the 23.6% Fib retracement level of the downward move from the $2,583 swing high to the $2,357 low, indicating potential for recovery.
On the flip side, hurdles seem to be forming near the $2,445 level and the trend line. The first significant resistance is likely to occur near the $2,470 level, or the 50% Fib retracement level of the downward move from the $2,583 swing high to the $2,357 low. The main resistance is now forming near $2,500. A clear move above this resistance might propel the price towards the $2,550 resistance and possibly even higher. Ether could potentially rise toward the $2,620 resistance zone if it manages to conclusively break above the $2,550 resistance.
However, if Ethereum fails to clear the $2,445 resistance, it could trigger another decline. Initial support on the downside is near the $2,380 level, with the first major support near the $2,350 zone. If the price falls below this support, it could be pushed towards $2,285, with further losses potentially driving it towards the $2,220 support level in the near term.
Technical indicators are currently painting a bearish picture, with the MACD for ETH/USD losing momentum in the bearish zone and the RSI for ETH/USD now below the 50 zone. However, the volatile nature of cryptocurrency markets means that the situation can change rapidly, and investors should keep a close eye on these critical support and resistance levels.
