Key Takeaways:
– After a fresh decline, Ethereum is now attempting to recover from the $2,500 zone.
– For upward momentum, Ethereum needs to clear the $2,740 resistance zone.
– Potential future gains might rise Ethereum to the $3,000 resistance zone or possibly to $3,050.
– If Ethereum fails to overcome the $2,700 mark, it might trigger another decline.
– Despite making efforts to rally above $2,600, Ethereum is trading below $2,700 and the 100-hourly Simple Moving Average.
Hitting the Resistance
Ethereum, one of the key market players in cryptocurrency, has faced a fresh decline after it hit the $2,700 roadblock. Having tried and failed to clear the $2,920 resistance like Bitcoin, Ethereum dove below the $2,800 and $2,700 support levels. This plunge moved Ethereum into what can be classified as a short-term bearish zone.
After a severe dip that tested the 50% Fib retracement level of the upward wave commencing from the low $2,125 swing to the current $2,922 high, the bulls found their footing near the $2,525 zone. Now, with a renewed move upwards from the $2,600 zone, Ethereum is trying hard to regain lost ground.
Athwart the Bearish Trend
As the situation currently stands, Ethereum is yet to regain the $2,700 mark and especially to conquer the 100-hourly Simple Moving Average. This plight is further complicated by a bearish trend line with a $2,700 resistance on the ETH/USD hourly chart.
When Ethereum attempts to rally its way upwards, it appears to stumble near the $2,700 mark. The first considerable resistance is near the $2,740 level, making it a crucial stopping point before a final bout with the significant resistance forming near the $2,850 to $2,910 zones.
Should Ethereum manage to clear this last hurdle of $2,910, it might take off toward the $2,950 resistance. The optimistic view is that an upside break above the $2,950 might call for more gains, possibly leading Ethereum toward the $3,000 resistance zone or even the $3,050 mark in the near term.
Facing Another Downslide?
However, as we’ve observed, predicting Ethereum’s trajectory is a challenging endeavor. If it fails to get over the $2,700 resistance again, Ethereum risks entering a new phase of decline. The first support on the downside comes in near the $2,600 level, with the primary backup resting near the $2,525 zone.
A more significant drop below the $2,525 support might push Ethereum toward the $2,440 support, or it might even hit the 61.8% Fib retracement level of the upward wave started from the $2,125 swing low to the $2,922 high. Any further losses might create headwinds for Ethereum, possibly torpedoing its price to the near-term support level of $2,350. The next critical support rests at $2,240.
As Things Stand Now
The MACD for ETH/USD indicates a loss of momentum in the bearish zone, while the RSI displays a position above the 50 zone, painting a more optimistic picture. While the crypto market remains notoriously unpredictable, Ethereum currently appears lodged between bulls and bears, with the critical pivot points at $2,525 and $2,700, respectively. As the Ethereum saga continues, traders and investors keep a keen eye on these markers, anticipating the next move.
Conclusion
The Ethereum market sees an intense tug of war as the Ethereum price strives to regain its footing over the $2,700 resistance mark. As the bulls and bears vie for control, Ethereum faces significant headwinds. However, the final victory remains uncertain, keeping the global crypto community on their toes.