Key Takeaways:
– Ethereum experienced a significant drop from the $2,720 resistance zone.
– It’s currently trading below $2,550 along with the 100-hourly Simple Moving Average.
– There’s potential for further losses if it can’t stay above the $2,450 support zone.
– Upside growth faces hurdles near the $2,550 level.
Ethereum Decline Continues
Ethereum, the second-largest cryptocurrency in terms of market capitalization, saw a fresh decline from the $2,720 resistance zone. The digital currency is now trading under $2,550, with a potential struggle ahead to initiate an increase in the near term.
Taking a deeper look, there was a notable break below a key bullish trend line previously supported at $2,560 on the hourly chart of ETH/USD. If the pair continues to fail to maintain its position above the $2,450 support zone, analysts predict this could point towards an extended loss.
Dipping Below $2,550
Struggling to stay above the $2,650 mark, Ethereum, mirroring Bitcoin’s dynamics, underwent a steep decline, plunging below the $2,620 and $2,600 zones. The bears further drew the price beyond $2,550. The impact of this drop saw Ethereum trading below both $2,550 and the 100-hourly Simple Moving Average.
Additionally, Ethereum is nearing the $2,460 support zone and the 61.8% Fib retracement level of the upward wave that spanned from the $2,488 swing low to the $2,719 high.
Resistance and Hurdles Ahead
Ethereum’s upward trajectory now seems to confront obstacles near the $2,550 level. The first major resistance is close to the $2,580 mark, with the principal resistance forming around $2,610. If the price decisively moves above the $2,610 resistance level, it may head towards the $2,650 resistance.
If Ethereum successfully breaks beyond the $2,650 resistance level, there could be scope for further gains in the forthcoming sessions. In such a scenario, Ether might even approach the $2,720 resistance zone.
Potential Further Declines
Counter to the favorable scenario, Ethereum might continue its downward march should it fail to overcome the $2,550 resistance mark. Initial support on the downside is near the $2,480 level, with the first substantial support near the $2,450 zone.
A clear drop below the $2,450 support zone could propel the price towards $2,380. Any losses beyond this mark might see the Ethereum price fall towards the $2,320 support level. If the downward trend continues, the next major support is at $2,250.
Technical Indicators
The Moving Average Convergence Divergence (MACD) for ETH/USD is showing increasing momentum in the bearish zone. Meanwhile, The Relative Strength Index (RSI) for ETH/USD is now below the 50 zone. Major support is at the $2,450 level, with significant resistance set at $2,550.
Conclusion
The see-saw dynamics in the ETH/USD trading reveal uncertainities ahead. Whether Ethereum will make a strong recovery or see further reduction remains to be seen. Nonetheless, external factors such as market sentiment, regulatory changes, and technological advancements could heavily influence the outcome. This is a good reminder for investors to approach the digital currency market with caution, considering both the potential rewards and risks.