Ethereum is currently navigating a challenging market environment, facing resistance just below the $2,550 level. The cryptocurrency has managed to sustain a trading level above $2,500, but it may encounter difficulties in mounting any significant recovery past $2,550 soon.
After initiating a downward correction, Ethereum has slipped beneath the $2,550 level, causing a bearish trend reminiscent of Bitcoin . Prices have also dipped below $2,500, with a recent low recorded around $2,413. While there has been a slight rebound above $2,450, any gains remain modest. This rally has seen Ethereum climb above the 23.6% Fibonacci retracement level from a prior high of $2,655.
At present, Ethereum is trading under the $2,520 level and the 100-hourly Simple Moving Average, which indicates continued challenges for upward movement. A short-term consolidation pattern is emerging, with significant resistance identified at the $2,500 level. The primary level of resistance lies near $2,535, corresponding to the 50% Fibonacci retracement from the recent high. Further resistance levels are positioned at $2,550.
Should Ethereum manage to break above the $2,550 resistance, it may open the door to further upward movement, potentially reaching the $2,620 zone in the near term. Subsequent challenges could arise near the $2,650 and $2,665 levels.
Conversely, if Ethereum fails to breach the $2,520 resistance, it risks further declines. The initial support is situated around $2,440, with a critical support level at $2,420. A decisive drop below this level could lead to further loss, potentially targeting support around $2,350 and ultimately $2,250, with a more significant support point at $2,120.
