Ethereum Price Weakens: Can It Defend the $2,500 Level?

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As a seasoned analyst with over two decades of trading experience under my belt, I’ve seen bull runs and bear markets come and go. The recent correction in Ethereum’s price from the $2,700 zone is not unusual, and it’s essential to remain calm and strategic during such times.

Initially, the cost of Ethereum began to decrease following the $2,700 region. Now, Ethereum is holding steady while attempting to maintain its position above the $2,500 support level.

    Ethereum started a downside correction below the $2,650 and $2,620 levels.
    The price is trading below $2,650 and the 100-hourly Simple Moving Average.
    There was a break below a connecting bullish trend line with support at $2,620 on the hourly chart of ETH/USD (data feed via Kraken).
    The pair could rise again if it stays above the $2,550 support zone.

Ethereum Price Trims Gains And Revisit $2,550

The cost of Ethereum (ETH) had difficulty climbing beyond the $2,700 barrier. Just like Bitcoin, ETH began to drop after this point. It fell below the $2,650 level, and then it dropped further below the $2,620 and $2,600 thresholds.

The cost fell beneath the 23.6% Fibonacci retracement threshold, which marks a significant level in the upward trend from the $2,311 bottom to the $2,722 peak, for the Ethereum-to-U.S. Dollar (ETH/USD) pair. Additionally, there was a break below a supportive bullish trend line that had been drawn connecting high points, with a key support at $2,620 on the hourly chart of ETH/USD.

Currently, the price of Ethereum is dipping below the $2,650 mark and falls short of the 100-hour Simple Moving Average. Yet, the buyers aim to defend potential drops below the $2,500 level, acting as a support for the cryptocurrency.

If there’s another rise, the price could potentially encounter obstacles around the $2,600 mark and the 100-hour Simple Moving Average. The first significant resistance is found near the $2,625 level. Breaking above $2,625 might push Ether towards the $2,700 resistance barrier.

Ethereum Price Weakens: Can It Defend the $2,500 Level?

In simpler terms, if the price manages to surpass $2,720 (a significant barrier), it could potentially rise towards approximately $2,880 in the short term, as this area presents another potential hurdle.

More Downsides In ETH?

If Ethereum doesn’t manage to break through the $2,625 barrier, it might keep heading lower. A potential floor could be found at $2,520, which is also halfway point of its recent upward move from $2,311 to $2,722. The primary support lies around the $2,500 region.

If the price drops significantly below $2,500, it could potentially fall to around $2,450. Further decreases may lead to a dip towards the nearby $2,320 support. The crucial support level in the immediate future is found at $2,250.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,500

Major Resistance Level – $2,625

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2024-08-12 07:34