Ethereum, the world’s second-largest cryptocurrency, is currently facing challenges in its attempt to climb above key resistance levels. With the price trading below $2,200 and the 100-hourly Simple Moving Average, investors are closely monitoring the market dynamics to gauge whether a bullish trend is imminent or if a bearish momentum will prevail.
Difficulty in Breaking Resistance
ETH has been struggling to gain momentum above the $2,150 resistance zone, resulting in a lack of upward movement. Despite an attempted increase above the $2,200 level, Ethereum failed to surpass the $2,250 resistance and experienced a fresh decline. In a similar fashion to Bitcoin, the price dropped below $2,200, reaching a low of around $2,136. However, Ethereum is now making another push to recover from this setback.
Potential Bearish Momentum
The failure to overcome the $2,210 resistance level could trigger a bearish trend for Ethereum. A clear move below the crucial support at $2,120 may pave the way for another significant decline. If this scenario unfolds, the price could potentially revisit the $2,000 support level in the near future. In more severe circumstances, Ethereum may even decline further to the $1,880 level.
At present, Ethereum is trading below the $2,200 mark and the 100-hourly Simple Moving Average, indicating a lack of bullish sentiment in the market. Additionally, a bearish trend line is forming with resistance near $2,210 on the hourly chart of ETH/USD. The price is currently facing resistance near the $2,205 level, close to the 61.8% Fibonacci retracement level of the recent decline from the $2,253 swing high to the $2,136 low.
The next critical resistance level is around $2,220, followed by the key barrier at $2,250. A substantial breakthrough above this resistance zone could potentially propel the price toward the $2,320 level. Further resistance can be expected at $2,350, and if Ethereum experiences additional gains, it may rally and test the $2,550 zone.
On the downside, initial support lies near the $2,165 level, with the first key support at the $2,120 zone. The breach and close below $2,120 might signify the beginning of another major decline. In this scenario, Ethereum could revisit the $2,000 support level, and if selling pressure persists, the price might further plummet to the $1,880 level in the coming days.
Technical Indicators
Analyzing the technical indicators, the hourly MACD for ETH/USD is gaining momentum in the bullish zone, providing a glimmer of hope for Ethereum to regain bullish traction. Additionally, the hourly RSI for ETH/USD has crossed the 50 level.
While Ethereum is encountering difficulties in its upward trajectory, it remains to be seen whether it will overcome the resistance and initiate a bullish trend or succumb to the potential bearish momentum. Traders and investors are advised to conduct their own research and consider the risks associated with investing in cryptocurrencies before making any investment decisions.
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