The Ethereum price is currently undergoing a correction after facing resistance at the $2,320 zone. As the price moves lower, there is a possibility of a test at the $2,050 support level before the bulls regain control. This article examines the current market conditions and provides insights into potential price movements for Ethereum.
Ethereum started its downward correction from the $2,325 level, causing the price to dip below several key support levels. The bears successfully pushed the price below $2,200, signaling a shift in market sentiment. However, a subsequent upward move led to a climb above the $2,200 level, indicating a potential recovery.
The Ethereum price is trading below $2,240 and the 100-hourly Simple Moving Average, which poses a significant resistance level. Additionally, two bearish trend lines are forming with resistance near $2,230 and $2,260 on the hourly chart of ETH/USD. The second trend line aligns with the 50% Fibonacci retracement level, further solidifying its significance.
For Ethereum to embark on a significant upward movement, it must surpass the resistance at $2,260. A successful close above this level could propel the price towards the $2,325 mark, with the main resistance residing at $2,350. If the bullish momentum persists, Ethereum might even rally and test the $2,500 zone.
However, failure to breach the $2,260 resistance could trigger a fresh decline. The initial support on the downside is near the $2,200 level, which is crucial for maintaining the current bullish sentiment. A break below this support level could lead to a close below $2,180 and potentially spark further bearish moves. In such a scenario, Ethereum might retest the $2,120 support and further losses could drive the price towards the $2,050 level.
The hourly MACD for ETH/USD is losing momentum in the bearish zone, implying a weakening bullish trend. Furthermore, the hourly RSI is now below the 50 level, indicating a possible shift towards bearish sentiment.
Ethereum is currently undergoing a correction after facing resistance at the $2,320 zone. The price is trading below key support levels and is now battling against resistance near $2,230 and $2,260. The outcome of this ongoing struggle will determine the future movement of Ethereum. Bulls need to regain control and push the price above the resistance level to continue the upward momentum. Conversely, a failure to do so could result in a fresh decline towards the $2,050 support level. As always, it is crucial to conduct thorough research and use the information provided in this article at your own risk.
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