Ethereum Price Pullback: A Pause in the Rally?
Ethereum Price Retraces Gains: Is the Bullish Momentum Stalling?
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After reaching a peak near $2,720, Ethereum (ETH) has undergone a corrective pullback, prompting speculation about a potential pause in the recent rally. ETH is currently trading below $2,650 and may find support near the $2,600 level.
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The initial surge above $2,700 was met with resistance, leading to a downward correction. This pullback has pushed ETH below both the $2,650 level and the 100-hourly Simple Moving Average. On the hourly chart, a key bearish trend line has emerged, with resistance currently positioned at $2,650. For ETH to resume its upward trajectory in the short term, it needs to maintain a position above the $2,600 support level.
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Ethereum Price Dips Again
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Ethereum’s price action in the past few hours has seen a continuation of the recent upward trend, with prices breaking above the $2,650 mark and even exceeding the $2,700 level. This bullish momentum eventually peaked at $2,728, however, before the bears stepped in. Similar to Bitcoin’s recent behavior, ETH started a downside correction from this peak. The price has since moved below both the $2,700 and $2,650 levels. Currently, ETH is trading below the 50% Fibonacci retracement level of the upward move from the $2,554 swing low to the $2,728 high.
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Despite the downward correction, potential buying opportunities exist near the $2,600 level or the 76.4% Fibonacci retracement level of the aforementioned upward move. However, on the upside, the price appears to be facing resistance near the $2,650 level. This resistance is further reinforced by the key bearish trend line on the hourly chart of ETH/USD.
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Bullish Potential: Breaking the $2,720 Barrier
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The initial resistance zone for ETH sits near the $2,685 level. The next major resistance lies near $2,720. If the price manages to break through the $2,720 resistance level, it could trigger further gains in the upcoming sessions. In this scenario, Ether could potentially rise towards the $2,840 resistance zone in the near term. Additional hurdles may appear near the $2,880 and $2,920 levels.
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Bearish Outlook: Potential for Further Downside
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If Ethereum fails to overcome the $2,650 resistance and continues its downward trend, initial support on the downside is expected near the $2,600 level. The next major support zone sits near the $2,550 level. A decisive break below the $2,550 support could push the price towards $2,520. Further losses could potentially lead to a decline towards the $2,450 support level. The next significant support lies at $2,365.
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Technical Indicators
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- Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is currently below the 50 zone.
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Key Levels to Watch
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- Major Support Level: $2,600
- Major Resistance Level: $2,650
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