Ethereum is currently experiencing a significant decline, having fallen below the $2,550 support level. This downturn follows a struggle to maintain momentum, particularly after failing to hold above the $2,650 resistance zone. Presently, ETH is trading under $2,500 and finds itself below the 100-hourly Simple Moving Average.
The recent price action revealed a decrease below both the $2,520 and $2,500 levels, with testing occurring around the $2,420 support. A low was established at $2,411, but early signs of recovery have emerged. Ethereum managed to breach the $2,450 resistance level, climbing past the 23.6% Fibonacci retracement level stemming from the downward movement between the recent swing high of $2,582 and the established low.
Despite these recovery attempts, Ethereum is still challenged near the $2,500 level, alongside the 50% Fibonacci retracement level. The immediate resistance level to watch is at $2,520, followed by the critical resistance forming near $2,550. Should Ethereum succeed in surpassing the $2,550 hurdle, it may pave the way for a climb towards the $2,600 resistance. A break above this level could indicate a continuation of gains, potentially pushing Ethereum towards the $2,650 range.
Conversely, if Ethereum cannot overcome the $2,500 resistance, the cryptocurrency may fall into another decline. Initial support has been identified around $2,450, while the key support level rests at $2,400. Should the price dip below this target, it could trigger further downturns towards the $2,350 and $2,320 levels, with the next significant support level situated at $2,250.
In terms of technical indicators, the hourly MACD for Ethereum shows diminishing momentum within the bearish zone, while the RSI is currently above the 50 level, indicating some potential for recovery if positive price action ensues.
