Despite attempting to break above the $2,550 resistance zone, Ethereum price has failed to continue its upward momentum. Currently, ETH is consolidating near the $2,450 level, exhibiting certain bearish signs that need to be closely monitored.
Ethereum initiated a recovery wave that pushed it above the $2,400 and $2,420 levels. However, the digital currency is still trading below the crucial $2,550 mark, as well as the 100-hourly Simple Moving Average. The recent price action also saw a break below a connecting bullish trend line with support at $2,500 on the hourly chart of ETH/USD (data feed via Kraken). It is essential for the cryptocurrency to clear the $2,550 resistance zone in order to rise steadily.
The bears became active near the $2,550 resistance zone, resulting in a peak at $2,555 and subsequent downward correction. The price dipped below the $2,450 level and tested support at $2,320 before starting to rise again. With the price still trading below $2,550 and the 100-hourly Simple Moving Average, Ethereum faces obstacles near the $2,500 level. The primary resistance sits at $2,550, followed by potential ceilings at $2,685 and $2,865.
In case Ethereum fails to break above the $2,550 resistance, it may undergo another decline. The initial support on the downside is around $2,350, with a significant support level at $2,300. A clear breach below $2,300 could trigger a further downward movement towards $2,150 and the 61.8% Fib retracement level. If the losses persist, the price could descend to the $2,120 support level, with the next key support at $2,050.
The hourly MACD for ETH/USD is currently gaining momentum in the bullish zone, indicating potential upward movement. On the other hand, the hourly RSI has surpassed the 50 zone, reflecting a positive sentiment among traders regarding Ethereum’s price action.
Ethereum’s price movement is currently characterized by consolidation below key resistance levels. Traders and investors should closely monitor the $2,550 resistance and the $2,300 support levels to gauge the future direction of Ethereum’s price action. Technical indicators suggest a potential bullish momentum, but market dynamics could shift rapidly, leading to various scenarios for Ethereum’s price in the near term.
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