Ethereum’s Value Struggles: Will It Hold at $2,500?

Ethereum is facing a challenge in defending its position above the $2,500 level as its price weakens following a correction from the $2,700 zone. Currently, Ethereum is undergoing consolidation and is struggling to maintain support above $2,500.

The downward correction for Ethereum began below the $2,650 and $2,620 levels, with the price trading below $2,650 and the 100-hourly Simple Moving Average. Additionally, a bullish trend line with support at $2,620 was breached on the hourly chart of ETH/USD.

In the event that Ethereum manages to hold above the $2,550 support zone, there is a possibility of a potential rise. However, the price is currently trading below $2,650 and the 100-hourly Simple Moving Average, with efforts from the bulls to prevent further downsides below the critical $2,500 support level.

Looking ahead, if Ethereum sees an upward movement, it may encounter resistance near the $2,600 level and the 100-hourly Simple Moving Average, with the primary resistance level at around $2,625. A breakthrough above $2,625 could propel Ether towards the $2,700 resistance.

On the flip side, failure to surpass the $2,625 resistance could lead to continued downward movement. Initial support levels on the downside are near $2,520 and the 50% Fib retracement level from the $2,311 swing low to the $2,722 high, with the major support resting at the $2,500 zone.

A breach below the $2,500 support level could push the price towards $2,450, potentially leading to further losses towards the $2,320 support level in the near term, with the subsequent key support at $2,250.

In terms of technical indicators, the MACD for ETH/USD is showing momentum in the bearish zone, while the RSI for ETH/USD is currently below the 50 zone. The major support level is at $2,500, while the major resistance level stands at $2,625.

In conclusion, Ethereum’s price movements are crucial as it navigates various support and resistance levels, with the $2,500 level playing a significant role in determining its short-term trajectory. Traders and investors are closely monitoring these levels to gauge the future direction of Ethereum’s price.