Ethereum has experienced significant challenges in maintaining upward momentum, failing to surpass the $2,750 resistance level and initiating a downward correction. Currently, ETH is encountering difficulties in establishing a new rally above the $2,650 level, having slipped below this critical support level.
As Ethereum aims to recover from its recent setbacks, it has traded downwards, breaching both the $2,650 and $2,700 support levels and entering a cautious bearish phase. The price plummeted to a low of $2,605 before showing signs of minor consolidation. This phase saw the price momentarily rise above $2,620, indicating a possible reversal near the 23.6% Fibonacci retracement level based on its recent high of $2,757 and the low at $2,605. A break above a bearish trend line at the $2,620 level highlighted the potential for recovery; however, sustained bullish momentum remains elusive.
At present, Ethereum ’s trading position below the $2,650 level and the 100-hourly Simple Moving Average proves to be a significant hurdle for recovery efforts. Resistance levels are clearly defined, with the first being at $2,700, coinciding with the 50% Fibonacci retracement level, creating further challenges for upward movement. A decisive breakthrough above $2,700 could catalyze a move towards the $2,750 resistance, and if this level is surpassed, the price could potentially target $2,800 in the near future.
Conversely, if Ethereum fails to break through the $2,650 resistance, it may face further declines, with immediate support situated around $2,600. Should the price fall below this level, the next significant support is around $2,550, and a continuation of losses could see it drop toward $2,500 and possibly $2,440 in the short term. As volatility persists, tracking technical indicators, including the MACD and RSI, will be essential to gauge future price movements.
