Ethereum Price Correction: Can Bulls Reclaim Control?
Ethereum Faces a Price Correction: Will Bulls Prevail?
Ethereum’s price has been on a downward trajectory, dipping below the $2,650 resistance level. This correction follows a similar pattern observed in Bitcoin, with ETH currently hovering around the $2,600 support zone. The path forward for Ethereum remains uncertain, with several hurdles potentially hindering its ascent.
The decline below $2,650 has pushed Ethereum below the 100-hourly Simple Moving Average. Additionally, a bearish trend line forming with resistance at $2,630 on the hourly chart of ETH/USD (data feed via Kraken) adds to the bearish sentiment. To initiate a fresh upward movement, Ethereum needs to hold above the $2,550 support level.
The downward trend began after Ethereum failed to sustain above the $2,700 mark. This decline saw the price fall below the $2,600 level, reaching a low near $2,575 before a minor recovery. Despite the brief surge, the price remains below the $2,640 level and the 100-hourly Simple Moving Average.
Key Resistance Levels
While facing resistance near the $2,625 level, Ethereum faces significant hurdles in its path to recovery. The bearish trend line with resistance at $2,630, coinciding with the 50% Fib retracement level of the downward move from the $2,672 swing high to the $2,575 low, represents a major obstacle. Further resistance lies at the $2,650 level, followed by a critical point at $2,665.
A successful break above the $2,665 resistance could ignite a rally, potentially pushing Ethereum towards the $2,700 resistance zone. The next hurdle would be the $2,720 level or potentially even the $2,800 mark.
Potential for Further Losses
Failure to overcome the $2,630 resistance could lead to continued downward pressure. Initial support lies near the $2,600 level, with a more substantial support zone situated around $2,550. A breach below $2,550 could trigger a decline towards $2,500 and, if the bearish momentum persists, possibly even towards the $2,450 support level. The next crucial support level rests at $2,320.
Technical Indicators
The hourly MACD for ETH/USD is currently losing momentum within the bearish zone. The hourly RSI for ETH/USD is below the 50 zone, indicating weakness in the market.
Summary
Ethereum’s price correction has pushed it below key support levels, with resistance levels posing significant challenges to any potential recovery. While a break above the $2,665 resistance could signal a bullish turnaround, a failure to reclaim the $2,630 level might lead to further losses. Investors should closely monitor technical indicators and support/resistance levels for guidance on the short-term trajectory of Ethereum’s price.
Disclaimer: This information is for general knowledge and educational purposes only. It is not intended to be financial advice.