Ethereum Price Dips Below $2,500: Is the Downtrend About to Continue?
Ethereum Price Faces Headwinds: Can It Regain Ground?
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Ethereum’s price has recently experienced a dip below the $2,500 level, raising concerns about the continuation of the bearish trend. While ETH is currently trading above $2,500, the journey back above $2,550 might prove challenging.
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The decline began below the $2,550 zone, pushing ETH below the $2,520 mark and the 100-hourly Simple Moving Average. A short-term consolidation pattern is forming on the hourly chart of ETH/USD, with resistance at $2,500. The pair must maintain its position above the $2,420 support level to initiate a fresh upward movement in the near term.
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Ethereum Price Slides 5%
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Ethereum’s price has been trapped in a bearish zone and continued its downward trajectory below the $2,600 level. ETH fell below the $2,550 support, mirroring the bearish sentiment seen in Bitcoin. This decline pushed the price below the $2,500 mark, forming a low near $2,413, where the price is currently consolidating losses.
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A minor surge above the $2,450 level was observed, with the price climbing above the 23.6% Fib retracement level of the downward move from the $2,655 swing high to the $2,413 low. Despite this upward movement, Ethereum’s price remains below $2,520 and the 100-hourly Simple Moving Average.
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Potential for a Rebound?
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On the upside, the price is encountering resistance around the $2,520 level. The short-term consolidation pattern forming on the hourly chart of ETH/USD also places resistance at $2,500. The first major resistance point lies near the $2,535 level, coinciding with the 50% Fib retracement level of the downward move from the $2,655 swing high to the $2,413 low. The next key resistance level is situated near $2,550.
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A break above the $2,550 resistance could trigger further gains in the upcoming sessions. In such a scenario, Ether could potentially surge toward the $2,620 resistance zone in the near term. The next hurdle lies near the $2,650 level or $2,665.
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Further Losses for ETH?
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If Ethereum fails to overcome the $2,520 resistance, it could continue its downward movement. Initial support on the downside is located near the $2,440 level. The first major support sits near the $2,420 zone. A definitive move below the $2,420 support could push the price towards $2,350.
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Any further losses might drive the price toward the $2,250 support level in the near term. The next key support level sits at $2,120.
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Technical Indicators
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Hourly MACD: The MACD for ETH/USD is losing momentum in the bearish zone.
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Hourly RSI: The RSI for ETH/USD is currently below the 50 zone.
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Key Levels
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Major Support Level: $2,420
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Major Resistance Level: $2,550
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It’s important to note that the cryptocurrency market is highly volatile, and prices can fluctuate significantly. This analysis should not be considered investment advice. Always conduct thorough research and consult with a financial advisor before making any investment decisions.