After a recent attempt at a new increase above the $2,600 mark, Ethereum’s price is experiencing a pullback, and the cryptocurrency may face challenges in maintaining the critical $2,500 support level.
Ethereum commenced a new downturn below the $2,600 level. Currently, it trades beneath $2,575 and the 100-hourly Simple Moving Average. A bullish trend line is emerging with support at $2,525 on the hourly chart of ETH/USD (data feed via Kraken).
The crypto could witness a fresh surge if it manages to hold above the $2,500 area in the short term. After finding support near $2,440, Ethereum mirrored Bitcoin’s recovery wave, surpassing resistance levels at $2,500 and $2,550.
Despite an upward spike above the $2,620 resistance and a move above the 23.6% Fib retracement level of the decline from the $2,880 high to the $2,440 low, bearish forces remained active around the $2,660 resistance zone.
The price has once again dipped below $2,600. Along with this, a bullish trend line with support at $2,525 is forming on the hourly ETH/USD chart. The price may encounter resistance near the $2,620 level on the upside, with the next crucial resistance level at $2,640 and the first significant hurdle at $2,660.
If Ethereum can decisively surpass the $2,660 resistance, the price could gravitate towards the $2,720 resistance. A subsequent break above this level could signal further gains, potentially pushing Ethereum towards the $2,800 or even $2,880 resistance zones.
However, if Ethereum cannot overcome the $2,660 resistance, it may start to decline again. Initial downward support lies around the $2,540 level, with the first significant support and the trend line located near the $2,525 zone.
A decisive drop below the $2,525 support might drive the price towards the $2,500 support. Further losses could push the price towards the $2,440 support level, with the next critical support at $2,350.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 zone.
Major Support Level – $2,500
Major Resistance Level – $2,660
