Ethereum Price Takes a Dip: Will Bulls Reassert Control?

Ethereum Price Dips Again: Will Bulls Step In to Protect the Trend?

Ethereum (ETH) has encountered a roadblock in its recent upward momentum, failing to sustain gains above the $2,750 resistance level. The cryptocurrency has initiated a corrective pullback, dipping below the crucial $2,680 support level.

This downward movement has pushed ETH below the $2,650 mark and the 100-hourly Simple Moving Average. A break below a key bullish trend line, which provided support near $2,680 on the hourly chart of ETH/USD (data feed via Kraken), has added to the bearish sentiment.

However, a renewed surge in buying pressure could propel Ethereum higher. If the price manages to break through the $2,650 and $2,680 resistance levels, it could indicate a shift in market sentiment and signal a continuation of the bullish trend.

Ethereum Price Trims Gains

While Bitcoin held its ground above the $26,200 level, Ethereum also saw a period of stability above the $2,620 mark. ETH successfully pushed past the $2,650 resistance, moving into a positive zone.

Despite this initial advance, the bears remained active near the $2,765 level. A peak was formed at $2,765, after which the price commenced a downward correction. The breakdown of the bullish trend line near $2,680 on the hourly chart of ETH/USD further fueled the sell-off, driving the price below $2,650.

A low was established at $2,626, and the price is currently consolidating near the 23.6% Fibonacci retracement level of the downward move from the $2,757 swing high to the $2,626 low.

Currently, Ethereum is trading below the $2,680 level and the 100-hourly Simple Moving Average. On the upside, immediate resistance is anticipated near the $2,665 level.

Potential for Upside

The first major resistance lies near the $2,700 level, coinciding with the 50% Fibonacci retracement level of the downward move from the $2,757 swing high to the $2,626 low. A decisive break above the $2,700 resistance could propel the price towards the $2,725 resistance level.

Furthermore, an upside break above the $2,725 resistance could open the door for further gains in the coming sessions. If this scenario unfolds, Ether could potentially rise towards the $2,780 resistance zone in the near term. The next hurdle after that sits near the $2,840 level or $2,880.

Downside Risks Remain

If Ethereum fails to clear the $2,680 resistance level, it could initiate another decline. Initial support on the downside is found near the $2,625 level. The first major support lies near the $2,600 zone.

A decisive break below the $2,600 support could push the price toward $2,550. Further losses could send the price towards the $2,500 support level in the near term. The next key support sits at $2,440.

Technical Indicators

• • Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

• • Hourly RSI – The RSI for ETH/USD is currently below the 50 zone.

Key Levels

• • Major Support Level – $2,600

• • Major Resistance Level – $2,680