Ethereum Price Turns Red: Is This a Temporary Dip?

The price of Ethereum has begun a new drop, falling below the $2,550 support level. At present, Ethereum is facing difficulties but may rebound if it manages to surpass the $2,500 resistance area.

  • Ethereum started a fresh decline from the $2,650 resistance zone.
  • The price is trading below $2,500 and the 100-hourly Simple Moving Average.
  • There was a break above a connecting bearish trend line with resistance at $2,450 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a recovery wave if it surpasses the $2,500 and $2,550 resistance levels.

Ethereum Price Takes Hit

The cost of Ethereum had difficulty remaining above $2,550 and subsequently dropped, much like Bitcoin did. Following this, Ethereum fell beneath the $2,520 and $2,500 price points.

Previously, the price dipped towards the $2,420 support area where it briefly paused, then fell to $2,411. Currently, the market is trying to bounce back. Earlier, we saw a surge that broke through the $2,450 resistance level. Additionally, the price rose above the 23.6% Fibonacci retracement level of the decline from the $2,582 peak to the $2,411 trough.

Additionally, an upward break occurred above a linking bearish trend line that held at approximately $2,450 on the hourly Ethereum/USD chart. Currently, Ethereum’s price is hovering below $2,500 and is lower than the 100-hour Simple Moving Average.

On a positive note, the price appears to be encountering obstacles at approximately $2,500 and the 50% Fibonacci retracement point of the decline from the $2,582 peak to the $2,411 trough. The initial significant resistance can be found around $2,520, with the primary resistance shaping up at approximately $2,550.

Breaking above the $2,550 barrier may propel me as a crypto investor to aim for the next resistance at $2,600. If we manage to overcome this higher resistance at $2,600, it could potentially pave the way for further gains in the upcoming sessions. Under such circumstances, Ether might reach the resistance zone of $2,650.

Another Decline In ETH?

If Ethereum doesn’t manage to surpass the $2,500 barrier, it might trigger a new drop. A potential initial floor can be found around $2,450. The primary supportive region lies roughly at the $2,400 area.

As an analyst, I’m observing that a dip below the $2400 mark could potentially drive the price down towards $2350. If further losses occur, we might see the price trending towards the near-term support level of $2320. The next significant support lies at $2250.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 zone.

Major Support Level – $2,420

Major Resistance Level – $2,500

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2024-11-04 12:44