Ethereum Price Retests $2,350: Is a Bounce In The Cards?

As a seasoned analyst with years of trading under my belt, I can see that Ethereum is currently consolidating after a significant downtrend. The price action suggests that ETH might be gearing up for another attempt to breach the $2,400 resistance.


The price of Ethereum continued to drop, reaching a potential support level at around $2,350. At the moment, Ethereum appears to be stabilizing and could potentially push higher if it manages to break through the current resistance at $2,400.

    Ethereum started a downside correction below the $2,400 zone.
    The price is trading just above $2,420 and the 100-hourly Simple Moving Average.
    There was a break below a short-term rising channel with support at $2,425 on the hourly chart of ETH/USD (data feed via Kraken).
    The pair must stay above the $2,350 support level to start another increase in the near term.

Ethereum Price Dips Further

The cost of Ethereum didn’t manage to initiate a new upward trend surpassing the $2,500 barrier. Instead, Ethereum continued to be bearish, similar to Bitcoin, and stayed below its support level at $2,420.

Below the $2,400 mark, there was a downward shift as well. This movement broke through a temporary uptrend line that had been supporting $2,425 on the hourly chart of ETH/USD. The rate dipped to test the $2,350 support area. A new low was established at $2,350, but now the price is climbing back up.

The cost surpassed the $2,350 and $2,360 marks, also exceeding the 23.6% Fibonacci retracement level, which represents the point of a 23.6% price pullback from the peak at $2,467 to the low at $2,350 in the previous downward trend.

Currently, Ethereum’s price is trading below $2,425 and the 100-hour moving average. On the positive side, the price encounters resistance around the $2,400 mark or the halfway point (50%) of the retracement from the $2,467 peak to the $2,350 trough, which is approximately at $2,410.

If Ether manages to push past its current resistance at $2,410, it may propel further upwards towards the next resistance around $2,550. A breach above $2,550 could potentially indicate more upward momentum in the near future, with key levels to watch being around $2,600 or $2,620.

More Losses In ETH?

If Ethereum doesn’t manage to surpass the $2,410 barrier, there’s a possibility it might initiate another drop. A potential initial cushion can be found around $2,365. The primary substantial support lies in the vicinity of $2,350 area.

Dropping below the $2,350 resistance could potentially lead to a decrease in price to around $2,300. Further declines may cause the price to fall towards the $2,250 support level in the short term. The significant support lies at approximately $2,120.

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 below the 50 zone.

Major Support Level – $2,350

Major Resistance Level – $2,410

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2024-10-10 06:42