Ethereum ’s price has recently dipped, testing the crucial support level at $2,450. Following this decline, the cryptocurrency is witnessing a modest recovery, although it still faces significant resistance around the $2,550 level.
Initially, Ethereum entered a downward correction that pushed it below the $2,550 level, as well as the $2,500 support level, placing it in a short-term bearish condition. The asset hit a low of $2,445 before beginning to recover, briefly surpassing the $2,500 threshold. This uptick has brought Ethereum above the 23.6% Fibonacci retracement level from its previous decline, which originated from a peak of $2,758 and bottomed at $2,445.
Currently, Ethereum is trading beneath both the $2,550 resistance and the 100-hourly Simple Moving Average, indicating continued challenges in regaining lost ground. An important resistance level is also being formed by a bearish trend line around $2,560 on the hourly chart. The immediate resistance at $2,600 is crucial, as it aligns closely with the 50% Fibonacci retracement level of the earlier price movement.
A decisive break above $2,600 could enable the price to target the $2,650 level, potentially leading to a move toward $2,700 in subsequent sessions. Further obstacles are predicted at around $2,720 and $2,750, complicating the ascent.
Conversely, if Ethereum struggles to overcome the $2,550 resistance, it may trigger another decline. The initial support on the downside is identified at the $2,520 level, with a significant support area near $2,500. A breach below this point could lead to additional downside pressure, potentially revisiting the $2,450 support level or even lower to around $2,420.
