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09 October, 2024

Ethereum Price Struggles at $2,400 Support: What’s Next for ETH?

09 October, 2024

Ethereum Price Holds Steady at Support: Will It Bounce or Break?

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Ethereum (ETH) has encountered a roadblock after its recent rally, testing the crucial $2,400 support level. The cryptocurrency is currently consolidating, leaving investors wondering whether it will rebound or succumb to further downward pressure.

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After failing to break above the $2,500 resistance zone, ETH initiated a corrective dip, mirroring Bitcoin’s movement. The price dipped below the $2,465 support level and even breached the $2,420 mark. The decline brought ETH to test the 50% Fibonacci retracement level of the recent upward move from the $2,310 swing low to the $2,519 high.

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However, buyers seem to be defending the $2,400 support level for now. Ethereum is currently trading just above $2,430, above the 100-hourly Simple Moving Average. On the upside, resistance appears near the $2,465 level.

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A Short-Term Rising Channel Emerges

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On the hourly chart, a short-term rising channel is forming, with support at $2,420. If ETH manages to break decisively above the $2,465 resistance, it could target the $2,500 resistance level and potentially push towards the $2,600 mark. A successful breakthrough of the $2,500 resistance would likely fuel further gains in the coming sessions, with the next hurdle potentially near the $2,650 or $2,665 level.

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Potential for Further Losses

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Should ETH fail to overcome the $2,465 resistance, a further decline might ensue. Initial support on the downside is located near the $2,420 level. The first major support sits at the $2,390 zone, coinciding with the 61.8% Fibonacci retracement level of the aforementioned upward wave. A decisive break below $2,390 could lead to a push towards $2,325. Further losses could then bring ETH down to the $2,240 support level. The next crucial support level lies 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 above the 50 zone.
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Key Levels

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  • Major Support Level: $2,390
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  • Major Resistance Level: $2,465
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In conclusion, Ethereum is currently in a delicate position, holding near a crucial support level. While a bullish breakout above $2,465 could drive further gains, failure to do so could lead to a continuation of the correction. The next few days will be crucial in determining the future direction of ETH. Investors should closely monitor these key levels and technical indicators to make informed trading decisions.