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05 November, 2024

Ethereum Price Stumbles: Will Support Hold?

05 November, 2024

Ethereum’s price continues to face downward pressure, currently trading below the crucial $2,500 support level. The recent decline has left ETH consolidating, and a recovery above the $2,500 resistance seems challenging. The initial decline began from the $2,550 resistance zone, pushing ETH below the $2,480 mark and the 100-hourly Simple Moving Average. A new bearish trend line has formed on the hourly chart of ETH/USD, creating resistance near $2,445 (data feed via Kraken).

However, there’s potential for a recovery if Ethereum manages to break through the $2,445 and $2,500 resistance levels. Such a move would signal a shift in momentum and could lead to a rebound.

Examining the Price Action

Ethereum mirrored Bitcoin’s recent decline, failing to maintain its position above $2,500. The price dipped below $2,450 and $2,420, testing the $2,350 support zone. A low was established at $2,357, from which the price is attempting to recover. This recovery effort pushed ETH above the $2,385 resistance level, reaching the 23.6% Fibonacci retracement level of the downward move from the $2,583 swing high to the $2,357 low.

Obstacles Ahead

Despite the recent recovery attempt, Ethereum remains below $2,500 and the 100-hourly Simple Moving Average. The bearish trend line forming near $2,445 presents a significant challenge on the upside. Immediate resistance lies around the $2,470 level, corresponding to the 50% Fibonacci retracement level of the downward move from the $2,583 swing high to the $2,357 low. The main resistance, however, is at $2,500. A decisive break above this level could propel ETH towards the $2,550 resistance. A further break above $2,550 could trigger a sustained rally in the coming sessions, potentially pushing Ether towards the $2,620 resistance zone.

Potential for Further Decline

Should Ethereum fail to overcome the $2,445 resistance, it could experience another downward move. Initial support on the downside sits near the $2,380 level, with the first major support residing around the $2,350 zone. A break below $2,350 could lead to a further decline towards the $2,285 level. Continued losses might send the price toward the $2,220 support level in the near term, with the next key support level at $2,150.

Technical Indicators

    • Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
    • Hourly RSI – The RSI for ETH/USD is currently below the 50 zone.

Key Support and Resistance Levels

    • Major Support Level: $2,360
    • Major Resistance Level: $2,500
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