The price of Ethereum (ETH) is facing a major hurdle as it struggles to climb above the key resistance levels of $2,200 and $2,250. This bearish momentum indicates that ETH might experience a significant downward trend if it breaks below the crucial support level of $2,120.
Ethereum is currently trading below both $2,200 and the 100-hourly Simple Moving Average, indicating a lack of momentum to push the price higher. On the hourly chart of ETH/USD, a bearish trend line can be observed, with resistance forming near $2,210. This trend line further strengthens the bearish sentiment in the market.
Failed Attempt to Break Resistance
Despite an initial attempt to break above the $2,200 level, Ethereum failed to gain enough momentum to surpass the resistance at $2,250. The price reached a high of around $2,253 before starting its decline, similar to Bitcoin. The drop took ETH below $2,200, reaching a low of $2,136.
Fresh Increase Attempt
Currently, ETH is trying to recover from the recent decline, with a move above the $2,180 level. The price tested the 50% Fibonacci retracement level of the decline from the swing high of $2,253 to the low of $2,136. However, Ethereum continues to trade below $2,200 and the 100-hourly Simple Moving Average, indicating a lack of bullish momentum.
Key Resistance Levels
The next major resistance level lies near $2,220, which coincides with the trend line. However, the main resistance remains at $2,250. A clear and significant move above this level could potentially send the price towards the $2,320 level. The subsequent resistance levels are at $2,350 and $2,420, with a potential rally towards the $2,550 zone.
If Ethereum fails to break above the resistance at $2,210, another decline might be imminent. The initial support on the downside is near $2,165, followed by the key support level at $2,120. A break below this support level and a subsequent close below $2,120 could initiate a major downward trend. In such a scenario, the price of Ether could revisit the crucial support at $2,000. Further losses might eventually drive the price towards the $1,880 level in the coming days.
Technical Indicators
The hourly Moving Average Convergence Divergence (MACD) for ETH/USD is gradually gaining momentum in the bullish zone, suggesting a potential shift in market sentiment. Additionally, the hourly Relative Strength Index (RSI) for ETH/USD is now above the 50 level, indicating a slight upward momentum.
Disclaimer: This article is intended for educational purposes only and does not represent the opinions of the author. Any investment decisions should be based on individual research and carry inherent risks. Readers are advised to exercise caution and use the information provided at their own discretion.