Ethereum ’s recent performance has shown a continued decline, testing the critical support level of $2,380. Following this dip, the cryptocurrency has begun to display signs of recovery; however, it faces significant hurdles in surpassing the $2,525 level.
Initially, Ethereum experienced a downturn that saw its value drop below $2,250, while Bitcoin followed a different trajectory. Ethereum reached a low of $2,379 before entering a corrective phase. There has been a minor uptrend, with prices briefly rising past the $2,420 level. Notably, this movement exceeded the halfway mark of the Fibonacci retracement level from the recent high of $2,562 to the low of $2,379. Despite a push above $2,500, Ethereum has encountered resistance in the vicinity of $2,520.
Currently, Ethereum is trading below the key level of $2,500, as well as the 100-hourly Simple Moving Average. An emerging short-term rising channel shows support at $2,480. However, the rise has stalled near the $2,520 level, which aligns closely with the 76.4% Fibonacci retracement level from the previous downward movement.
To initiate a more substantial upward trend, Ethereum must overcome the first major resistance at $2,550. A breakthrough at this level could propel prices toward $2,600, with further gains possible if the price surpasses $2,650, potentially leading to resistance at $2,750.
Conversely, should Ethereum be unable to break through the $2,520 resistance, it runs the risk of a further decline. Initial support levels are observed near $2,480 and $2,420, with more significant support lying at $2,380 and $2,320 if prices continue to drop.
