As an analyst with years of experience in the crypto market, I find myself looking at Ethereum’s latest price action with a mix of intrigue and caution. The recent dip to $2,400 was a stark reminder of how volatile this space can be, but the subsequent recovery is a sign that the bulls are not ready to give up just yet.
The cost of Ethereum briefly touched around $2,400 before bouncing back slightly and recouping some losses. For Ethereum to initiate a substantial rise in the short term, it needs to surpass the resistance at roughly $2,550.
- Ethereum started a consolidation phase after a sharp decline to $2,400.
The price is trading below $2,550 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance at $2,555 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a recovery wave if it clears the $2,555 and $2,600 resistance levels.
Ethereum Price Eyes Recovery
The cost of Ethereum dropped significantly, falling below the $2,650 mark, and at one point, it even dipped below the $2,550 and $2,500 support levels that Bitcoin also experienced a decline at. However, near the $2,400 area, the bulls managed to re-emerge, suggesting a potential recovery might be on the horizon.
At $2,394, a dip was created, followed by a small upward trend. The price surpassed both $2,450 and $2,480. It exceeded the 23.6% Fibonacci retracement level of the downward slope from the peak at $2,820 to the trough at $2,394.
Currently, Ethereum’s trading value is lower than $2,550 and its 100-hour moving average. On the positive side, the price appears to encounter obstacles around the $2,550 mark. Additionally, a significant bearish trendline is developing with a resistance at $2,555 on the hourly ETH/USD chart.
Approaching the $2,600 mark is where a significant barrier can be found. This point is roughly at the 50% Fibonacci retracement point of the price drop from the peak of $2,820 to the low of $2,394. If Ether manages to close above the $2,600 level, it may push toward the resistance at $2,665.
In simpler terms, if the price manages to surpass approximately $2,720, it could potentially rise further towards around $2,820 in the short term, as this level currently serves as a significant resistance point.
Another Decline In ETH?
Should Ethereum not manage to surpass the $2,555 barrier, it might trigger a fresh drop. A potential cushion in case of a decline lies around $2,480, while the first significant support area can be found roughly near the $2,450 level.
If the price drops significantly below $2,450, it may head towards $2,425 where buyers might reappear. Further decreases could drive the price to the nearby support of $2,320. The crucial next support lies at $2,250.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $2,450
Major Resistance Level – $2,550
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2024-08-29 06:58