Ethereum continues to experience downward pressure, trading beneath the crucial $2,500 support level. Following a recent decline that began near the $2,550 level, ETH has struggled to regain its footing, facing challenges in surpassing key resistance points.
As the price dipped below $2,450 and $2,420, a testing moment occurred around the $2,350 support zone, where a low of $2,357 was recorded. Subsequently, Ethereum made a slight recovery, climbing past the $2,385 resistance. This move correlated with the 23.6% Fibonacci retracement level from the previous decline, which reached from the swing high of $2,583 down to the recent low of $2,357. Currently, Ethereum is trading under both the $2,500 level and the 100-hourly Simple Moving Average, indicating a bearish trend.
Resistance is building just above the current price, particularly near the $2,445 level, where a new bearish trend line has formed. The first significant resistance level can be observed around $2,470, coinciding with the 50% Fibonacci retracement from the recent downward move. If Ethereum successfully breaks above $2,500, it could signal a potential rally towards the $2,550 resistance and possibly escalate further to the $2,620 zone.
Conversely, if Ethereum fails to breach the $2,445 resistance, it may be poised for another downturn. The initial support is located around $2,380, with a more critical support level at $2,350. A decisive break below $2,350 could trigger a deeper decline, potentially targeting $2,285, and further losses might lead to a drop towards the key level of $2,220, with $2,150 serving as the next major support area.
Technical indicators reflect a waning momentum in the bearish zone, as the MACD for ETH/usd shows signs of losing steam. Additionally, the RSI for ETH/usd remains firmly below the 50 mark, highlighting the prevailing bearish sentiment in the market.
