Ethereum has seen a notable increase lately, breaking through the significant $2,500 level. However, recent price movements indicate that Ethereum is undergoing a correction. Currently, it appears to be seeking support around the $2,400 level.
Initially, Ethereum had a successful surge past the $2,450 resistance, joining Bitcoin in a positive trend. The price reached a high of approximately $2,519 before encountering selling pressure that led to a downward correction. Following this peak, Ethereum dipped below the $2,450 support level and breached the 23.6% Fibonacci retracement level of its recent upward move from a low of $2,311 to the high of $2,519. Moreover, the breach of a crucial bullish trend line on the hourly chart indicates a shift in market dynamics.
As of now, Ethereum is trading beneath both the $2,450 level and the 100-hourly Simple Moving Average, suggesting short-term bearish sentiment. Despite this, the price is finding some support around the 50% Fibonacci retracement level, indicating that the bulls are still trying to defend their position. The immediate resistance continues to be the $2,450 level, and a successful breakout above this level could pave the way for another attempt to reach $2,500 and beyond.
If Ethereum fails to break the $2,450 resistance, further declines may be on the horizon. In such a scenario, initial support lies near $2,420, while the critical support level rests at $2,400. A drop below this level could lead to more significant losses, potentially targeting $2,320 or even $2,250.
Technical indicators reveal a loss of bullish momentum, with the MACD showing weakening signals and the Relative Strength Index (RSI) presently positioned below 50. The upcoming sessions will be crucial in determining Ethereum ’s next move.
