Ethereum’s Price Struggle Raises Concerns About Uptrend Sustainability
Ethereum has been facing challenges in maintaining its recent gains, raising concerns about the sustainability of its upward trend. Currently, Ethereum is hovering around $2,635 and is vulnerable to further declines after struggling to surpass the $2,750 resistance level.
The downward movement started after Ethereum failed to break through the $2,750 barrier. As a result, the price is now below $2,700 and the 100-hourly Simple Moving Average. Notably, there was a breach below a crucial contracting triangle with support at $2,695 on the hourly ETH/USD chart provided by Kraken. If the price drops below the $2,635 support area, it could experience further losses.
Despite a brief rise from the $2,650 support level, Ethereum faced resistance near $2,750, leading to a correction in its price. The recent peak touched $2,763 before the decline below $2,720 and $2,700. Additionally, the breach of the support at $2,695 added to the downward pressure on ETH/USD.
At present, Ethereum is trading under $2,700 and the 100-hourly Simple Moving Average, with consolidation around the $2,635 mark. Any potential upward movement may encounter obstacles around the $2,700 level. This area is close to the 50% Fib retracement level from the recent drop from $2,763 to $2,635.
The primary resistance lies near $2,735 or the 76.4% Fib retracement level from the recent decline. A successful close above $2,735 could propel Ether towards the $2,765 resistance level. Looking ahead, the next significant barrier stands at $2,800, with a breakthrough potentially driving the price towards the $2,880 resistance zone in the short term.
In the event that Ethereum fails to surpass the $2,700 resistance level, it may continue its downward trajectory. The initial support is situated around $2,635, followed by a more critical support zone near $2,600. A clear breach of $2,600 could push the price towards $2,550, and further losses might lead it to the $2,520 support level, with the next crucial support at $2,440.
Analyzing the technical indicators, the MACD for ETH/USD is showing a loss of momentum in the bullish region, while the RSI has dipped below the 50 zone. The major support level is identified at $2,635, with the major resistance level at $2,700.
In conclusion, Ethereum’s price struggles highlight the importance of monitoring key levels and indicators to assess its future movements accurately. Traders and investors are advised to conduct thorough research before making any investment decisions in the volatile cryptocurrency market.
