Ethereum is making a concerted effort to recover after recently trading near the $2,250 level. It has managed to rise above key resistance levels including $2,300 and $2,320, yet the ascent has been met with challenges. Currently, Ethereum is facing difficulty in surpassing the $2,385 resistance level as it trades below $2,350 and the 100-hourly Simple Moving Average.
The recent movements indicate that despite a temporary rise, Ethereum has begun to display signs of weakness. After breaking out of a short-term declining channel marked by resistance at $2,290, the digital asset initially saw some momentum. The price even momentarily exceeded $2,260 before encountering selling pressure, halting its progress near the 61.8% Fibonacci retracement level of a previous downward trend.
Looking ahead, Ethereum needs to successfully break through the $2,350 resistance to potentially pave the way for further gains. The next significant hurdle comes at $2,385, with an upward movement beyond this level potentially allowing ETH to challenge the $2,420 resistance. Should this bullish momentum continue, there is a possibility that prices could rally toward the $2,450 resistance zone.
Conversely, if Ethereum fails to breach the $2,340 level, the possibility of a downward trend could emerge. Key support levels to watch are situated around $2,300 and $2,250. A decisive move below $2,250 could signal a more pronounced decline, with potential targets at $2,180 and, if losses extend further, $2,120.
As the technical indicators suggest, the MACD is losing momentum while the Relative Strength Index (RSI) is currently above the neutral zone. This backdrop highlights the uncertainty surrounding Ethereum ’s immediate price trajectory.
