Ethereum’s Price Dips: Will ETH Rebound From $2,550?

Ethereum’s price trajectory has taken a downturn, prompting questions about its ability to rebound from the $2,550 level. The recent pullback from the $2,680 resistance has left ETH vulnerable to further declines unless it manages to hold above $2,550.

The decline in Ethereum’s price saw it slipping below the $2,650 mark and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD provided by Kraken, a crucial bullish trend line with support at $2,610 is emerging, indicating a potential for extended losses if the price falls below the $2,550 support zone.

Despite an initial attempt to break above $2,680, Ethereum failed to sustain its upward momentum and began a fresh decline below $2,650. This decline breached the 23.6% Fib retracement level of the upward movement from the $2,514 swing low to the $2,682 high. However, support is currently visible near the $2,620 level.

Looking ahead, if Ethereum manages to rise again, it may encounter obstacles around the $2,650 level, with the primary resistance situated near $2,680. A successful breach above $2,680 could propel Ether towards the $2,720 resistance, followed by a significant hurdle at $2,720, potentially leading to a push towards the $2,880 resistance zone in the short term.

In the event that Ethereum struggles to surpass the $2,680 resistance, a continuation of the downward trend is possible. Initial support lies around $2,620, followed by a major support level near the $2,600 zone or the 50% Fib retracement level from the $2,514 swing low to the $2,682 high. A clear break below $2,600 could pave the way for a drop to $2,550, where bullish activity might emerge, though further losses could drive the price towards the $2,500 support level, with the next key support at $2,440.

In terms of technical indicators, the MACD for ETH/USD is showing increasing bearish momentum, while the RSI has dipped below the 50 zone. The major support level stands at $2,600, with a significant resistance level at $2,680.

The outlook for Ethereum remains uncertain as it navigates through these price levels, with potential for both upside and downside movements depending on how it interacts with the key support and resistance zones. Traders and investors are advised to conduct thorough research and exercise caution in their decision-making processes to navigate the volatile crypto market effectively.