Ethereum Price Loses $2,350 Level, Traders Eye Rebound Signals
In a recent downturn, Ethereum's value plummeted, sinking beneath the $2,350 threshold. Currently, the cryptocurrency is experiencing a period of consolidation, hovering above $2,250, but its prospects for a swift recovery appear uncertain.
A corrective downward movement commenced when Ethereum's price reached the $2,465 level, prompting a decline that has persisted below both the $2,350 mark and the 100-hour Simple Moving Average. An hourly chart of the $ETH/USD pair, sourced from Kraken, reveals a bearish trend line with a resistance point at $2,300. Should the cryptocurrency manage to maintain its position above $2,250, it may yet embark on a fresh upward trajectory.
Following its inability to sustain a stable position above $2,420, Ethereum's price experienced a downturn, mirroring the movement of Bitcoin. The value of $ETH dipped below the $2,400 and $2,350 thresholds, eventually reaching a low of $2,253. Presently, the cryptocurrency is consolidating its losses beneath the 23.6% Fibonacci retracement level of its downward movement from the $2,465 high to the $2,253 low.
With Ethereum currently trading beneath $2,350 and the 100-hour Simple Moving Average, the bulls must continue to support the price above $2,250 to facilitate another potential increase. Immediate resistance is anticipated near the $2,300 level, as well as the trend line, while the first significant resistance is situated near the $2,335 level. A further crucial resistance point is located near the $2,360 level, which coincides with the 50% Fibonacci retracement level of the downward movement from the $2,465 high to the $2,253 low.
According to data from TradingView.com, a decisive move above the $2,360 resistance could propel the price toward the $2,415 resistance. If the price successfully breaks through the $2,415 region, it may pave the way for additional gains in the forthcoming days, potentially driving Ether toward the $2,465 resistance zone or even the $2,500 mark in the near term.
Conversely, if Ethereum fails to overcome the $2,360 resistance, it may initiate a fresh decline. The initial support on the downside is situated near the $2,250 level, while the first major support is located near the $2,220 zone. A clear break below the $2,220 support could push the price toward the $2,200 support, and any further losses may drive the price toward the $2,150 region, with the primary support being $2,120.
Technical indicators suggest that the hourly MACD for $ETH/USD is gaining momentum within the bearish zone, while the hourly RSI for $ETH/USD has fallen below the 50 zone. Key levels to monitor include the major support at $2,250 and the major resistance at $2,360.