Recently, Ethereum started a downside correction from the $2,700 zone, struggling to maintain its position above the $2,500 support level. The price dropped below $2,650 and the 100-hourly Simple Moving Average, indicating a bearish trend in the market. There was also a break below a bullish trend line at $2,620, causing further concern for Ethereum traders.
Price Movement:
The price of Ethereum declined below the 23.6% Fib retracement level, signaling a weakening bullish momentum. The bears are currently in control, with the price trading below $2,650 and the 100-hourly SMA. Despite efforts by the bulls to defend the $2,500 support zone, Ethereum is facing hurdles near the $2,600 level and the 100-hourly SMA.
If Ethereum manages to break above the $2,625 resistance level, it could potentially reach the $2,700 resistance zone. However, a failure to clear this hurdle might result in further downside movement. Initial support is seen near $2,520, followed by the major support level at $2,500. A breach of the $2,500 support could lead Ethereum towards $2,450, with the next key support at $2,320 and $2,250.
The hourly MACD for ETH/USD is showing momentum in the bearish zone, while the hourly RSI has dipped below the 50 zone. These indicators suggest a shift towards a more bearish outlook for Ethereum in the near term.
Ethereum is currently facing a challenging period as it struggles to maintain its position above key support levels. Traders should keep a close eye on the resistance and support levels mentioned above to gauge the potential direction of the price movement. The technical indicators also point towards a bearish trend, signaling a cautious approach for Ethereum investors.