Ethereum Price Outlook: Potential Decline Ahead, More Slippage Expected?

Ethereum has seen a recent downtrend, slipping below the crucial $2,550 support level, with potential further decline towards the $2,250 support zone before any significant bullish activity is expected.

The cryptocurrency started a fresh decline below $2,550 and is currently trading under $2,500 and the 100-hourly Simple Moving Average. An ominous bearish trend line is emerging with a resistance point at $2,500 on the hourly ETH/USD chart provided by Kraken. To trigger a potential uptrend, ETH must maintain a level above $2,400 in the short term.

Ethereum’s price failed to sustain above the $2,620 support level, leading to extended losses below $2,550 and $2,500, mirroring Bitcoin’s struggles. The price even tested the $2,400 support level, hitting a low near $2,401 before showing signs of a recovery attempt. Currently, Ethereum is testing the 23.6% Fibonacci retracement level from the recent downward swing.

Despite efforts to recover, Ethereum remains below $2,500 and the 100-hourly Simple Moving Average, with a bearish trend line forming resistance at $2,500 on the hourly chart. The price faces obstacles near $2,500 and the 100-hourly SMA, along with the 50% Fibonacci retracement level from the recent high to low swing.

The primary resistance level lies at $2,550, and a breakthrough could propel Ether towards the $2,620 resistance, with further resistance at $2,660 and potentially $2,800 in the near future. However, failure to surpass the $2,500 resistance may trigger another downward trend, with initial support at $2,420 and a more significant support level at $2,400.

A breach below $2,400 could lead to a further drop towards $2,320, where bullish activity may emerge. Subsequent losses might drive the price to the $2,250 support level, followed by a key support at $2,110.

In terms of technical indicators, the hourly Moving Average Convergence Divergence (MACD) for ETH/USD indicates increasing bearish momentum, while the Relative Strength Index (RSI) has dipped below the 50 mark.

In summary, Ethereum is currently navigating a challenging price landscape, with crucial support and resistance levels dictating its short-term trajectory. Traders and investors are closely monitoring these levels to gauge potential price movements in the coming sessions.