Ethereum Price Declines: Normal Respite or Indicator of Greater Issues Ahead?

The price of Ethereum has risen past the $2,500 level. Currently, it is undergoing a correction and may revisit the support level at $2,350.

• Ethereum has initiated a downward correction after reaching resistance at $2,600.
• The price remains above $2,400 and the 100-hour Simple Moving Average.
• A bearish trend line, which previously offered support at $2,500, has been breached on the hourly chart for ETH/USD.
• The trading pair may find buyer interest around $2,350, potentially leading to a rebound.

Ethereum Prices Target New Highs

The price of Ethereum has shown resilience, bouncing back above $2,350 and outperforming Bitcoin. ETH is gaining momentum to surpass the $2,400 resistance area.

The bulls successfully elevated the price past the $2,550 resistance threshold, which resulted in over a 35% increase, with the price recently testing the $2,600 resistance level. The highest point reached was $2,624, followed by a correction. There has been a slight dip below the 50% Fibonacci retracement level from the upward movement between the swing low of $2,272 and the peak of $2,624.

A break below the bullish trend line that provided support at $2,500 has occurred on the hourly ETH/USD chart. Despite this, bullish activity remains strong above $2,400, where Ethereum is currently trading alongside the 100-hour Simple Moving Average.

On the upside, there appear to be obstacles around the $2,500 mark. The next significant resistance is situated around $2,550, while the primary resistance level lies at $2,620. A decisive move past $2,620 could propel the price toward $2,650.

A successful breakout above the $2,650 resistance threshold may lead to further gains in upcoming sessions. In such a scenario, Ether could potentially rise toward the resistance zone at $2,720 or even $2,780 shortly.

Possibility of Further Declines in ETH?

If Ethereum cannot break through the $2,500 resistance, it may initiate another downward correction. The initial support on the downside is around $2,400. The first major support level is near $2,350, coinciding with the 76.4% Fibonacci retracement from the upward move between the $2,272 swing low and the $2,624 peak.

A defined movement below the $2,350 support could push the price toward $2,275. Additional losses may drive the price to the $2,220 support level in the near future, with the next major support positioned at $2,200.

Technical Indicators

Hourly MACD – The MACD for ETH/USD shows decreasing momentum within the bullish zone.

Hourly RSI – The RSI for ETH/USD has dropped below the 50 level.

Key Support Level – $2,350

Key Resistance Level – $2,500