Key Takeaways:
– Ethereum’s price falls below $2,350 due to bearish momentum and struggle to reclaim the peak.
– A bearish trend line with resistance at $2,360 has been observed.
– Ethereum’s short-term outlook is weak, with consolidation at lower prices.
– If Ethereum fails to cross the $2,360 resistance, further declines may ensue.
– The immediate major support level is $2,250.
Ethereum Struggles to Maintain Gains
After facing a considerable decline below $2,350 and $2,320, Ethereum, the second-largest cryptocurrency by market capitalization, is grappling to keep its ground. Recent trends show that Ethereum price dipped below $2,310, settling below the crucial 100-hourly Simple Moving Average. This suggests that the cryptocurrency is in a bearish zone, further affirmed by the significant bearish trend line screenplayed at a resistance of $2,360 on the hourly chart of ETH/USD.
Sustaining Recovery Efforts
Ethereum’s failure to surpass the $2,450 resistance triggered this downward spiral, mirroring Bitcoin’s similar descent. This caused the digital asset to crash through the support levels of $2,400 and $2,350. At present, Ethereum’s price is trading below $2,310 with losses being consolidated. However, a glimmer of hope for recovery is observed with a minor rebound above the $2,285 level.
The digital currency also tested the 23.6% Fib retracement level, attributing it to the down wave from a $2,466 swing high to a $2,253 low. Facing hurdles, Ethereum’s price is struggling around the $2,300 level, with a descending channel forming at the same resistance.
Resistance Ahead
The primary significant resistance is stationed near the $2,340 level, followed by the next key resistance near $2,360. Trading figures are shadowed by a major bearish trend line establishing its resistance at $2,360. An upside break above this resistance could invoke more gains, projecting Ether towards the $2,420 resistance zone in the near term with the next hurdle positioned near the $2,465 level.
Potential More Losses
The short-term outlook for Ethereum appears weak. If it fails to overcome the $2,360 resistance, another decline wouldn’t be far off. Initial support on the downside is approximated to be near $2,265, with the first significant support close to the $2,250 mark. Any further losses could lead to the price stooping towards $2,200. In an extreme scenario, the digital asset could tumble towards the $2,150 support level in the coming days with the next critical support stationed at $2,120.
Technical Insights
Based on technical indicators, the MACD (Moving Average Convergence Divergence) for ETH/USD is losing momentum in the bearish zone. The RSI (Relative Strength Index) for ETH/USD is now registered below the 50 zone, indicating weakness in upward momentum. The primary support and resistance levels are $2,250 and $2,300, respectively.
In conclusion, Ethereum’s near-term outlook appears to be weak, although the digital currency’s standing could improve as technical indicators shift their course. Nevertheless, traders should closely monitor these developments, especially the resistance at $2,360.