Ethereum’s price action has been marked by a decline following the failure to break through the $2,650 resistance level. This move mirrors recent bearish trends observed in Bitcoin. The downward pressure intensified as ETH fell below $2,600 and breached the crucial $2,550 support level, ultimately reaching a low of $2,470. A brief recovery above $2,500, including a break through a key bearish trend line on the hourly chart of ETH/USD (via Kraken), provided short-lived optimism. However, this rally lacked momentum and did not reach the 23.6% Fibonacci retracement level from the decline to $2,470. It remains below the 100-hourly Simple Moving Average (SMA).
To regain strength, Ethereum needs to reclaim the $2,550 resistance and surpass $2,600. A significant break above $2,620, which aligns with the 50% Fibonacci retracement level of the recent decline, could propel ETH toward the $2,720 and even potentially higher levels of $2,780-$2,880 in the near term.
However, bearish signals dominate short-term technical indicators.
Hourly MACD: The bearish trend intensifies.
Hourly RSI: Trading below 50, indicating weakening bullish momentum.
Key Support Levels to Watch
If bulls fail to regain the $2,600-$2,620 resistance area, ETH could face further declines. Immediate support lies at $2,500, but the critical level to watch is $2,470. A decisive break below this zone could trigger a drop towards $2,420, followed by deeper support levels at $2,350 and $2,320.
Traders and investors are advised to exercise caution due to high volatility and short-term trends favoring bears.