Ethereum has entered a downward trend after encountering resistance at the $2,720 level. Currently, the cryptocurrency is trading below $2,550 and is facing challenges in initiating a rebound in the near future.
The decline began as Ethereum struggled to maintain levels above $2,650, mirroring the performance of Bitcoin . It witnessed a significant drop, surpassing levels of both $2,620 and $2,600. This downward movement resulted in a breach below a crucial bullish trend line, which had previously offered support at around $2,560. Furthermore, Ethereum ’s price fell below the 50% Fibonacci retracement level, originating from the $2,488 swing low to the recent high of $2,719. As a result, the price has fallen past the $2,550 level.
Currently, Ethereum is approaching the $2,460 support zone, which coincides with the 61.8% Fibonacci retracement level from the same upward wave. Any upward movement appears to encounter resistance near the $2,550 level, with significant barriers at $2,580 and then at $2,610. A movement above $2,610 could set the stage for a potential rise toward the $2,650 level.
However, the outlook remains cautious. If Ethereum fails to overcome the $2,550 resistance, it may continue to decline. Immediate support is seen at the $2,480 level, while a more critical level lies at $2,450. Should the price fall beneath this support, the next targets could range between $2,380 and $2,320, with yet another significant level at $2,250.
Technical indicators also reflect a bearish sentiment, with the MACD showing increased momentum in the negative territory and the RSI dipping below the neutral 50 line. The coming sessions will be crucial in determining Ethereum ’s trajectory as it tests these support and resistance levels.
