Ethereum Price Slumps: Will it Rebound Soon?

Ethereum Price Struggles to Stay Afloat

Ethereum (ETH) has been on a downward trajectory, slipping below the crucial $2,350 support level. This decline follows a similar pattern seen in Bitcoin, indicating a broader market weakness. The price is currently consolidating losses and faces an uphill battle to regain its footing above $2,350.

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The hourly chart paints a bearish picture, with a major trend line forming resistance at $2,360. ETH needs to overcome this hurdle to initiate a recovery rally. Breaking above $2,360 could pave the way for a surge towards the $2,420 resistance zone.

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Key Levels to Watch

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On the upside, the price faces immediate resistance near the $2,300 mark. Key resistance levels are also situated at $2,340 and $2,360, corresponding to the 50% Fibonacci retracement level of the recent downward wave.

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On the downside, initial support lies near the $2,265 level. Below that, the $2,250 zone offers significant support. If the price breaches $2,250, it could trigger a further decline towards $2,200 and potentially even $2,150. The $2,120 level marks the next key support zone.

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Technical Indicators

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The hourly MACD for ETH/USD is losing momentum in the bearish zone. The hourly RSI is currently below the 50 level, indicating oversold conditions.

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What to Expect

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The current consolidation phase in Ethereum is a crucial moment. If ETH fails to reclaim the $2,360 resistance level, it could continue its downward trajectory. However, a successful break above this level could spark a rebound towards the $2,420 resistance zone. Traders are advised to monitor these key levels closely and adjust their strategies accordingly.