The Ethereum price underwent further declines, reaching and testing the $2,300 support. Currently, ETH is making an effort to initiate a recovery rally above the $2,340 threshold, with a potential test of $2,390.
Ethereum initiated a new downward movement, dipping below both the $2,420 and $2,400 levels. The current trading scenario positions the price below $2,400 and the 100-hourly Simple Moving Average.
In a positive development, there was a breach above a connecting bearish trend line with resistance around $2,340, as observed on the hourly chart of ETH/USD (data feed via Kraken). The pair could potentially experience a renewed upward movement upon successfully surpassing the $2,390 and $2,400 levels.
Ethereum’s Value Revisits the $2,300 Mark
Ethereum encountered challenges in initiating a renewed uptrend beyond the resistance levels at $2,550 and $2,580. Following Bitcoin’s lead, ETH underwent a fresh decline, breaching the $2,400 support.
The price descended below the $2,350 mark, establishing a new weekly low around $2,302, and is currently consolidating these losses. There was a minor uptick above the $2,330 level, surpassing the 23.6% Fibonacci retracement level of the downward movement from the $2,479 swing high to the $2,302 low.
Furthermore, a positive development included a break above a connecting bearish trend line with resistance near $2,340, as depicted on the hourly chart of ETH/USD. Presently, Ethereum is trading below $2,400 and the 100-hourly Simple Moving Average, encountering resistance around the $2,365 level.
The next potential obstacles are at $2,390 or the 50% Fibonacci retracement level of the downward movement from the $2,479 swing high to the $2,302 low. The subsequent significant resistance lies near $2,400. A clear breakthrough above the $2,400 level may set the stage for a substantial upturn. In such a scenario, the price could aim for the $2,480 level.
The upcoming crucial challenge is positioned around the $2,500 zone. Successfully surpassing the resistance at $2,500 might initiate a sustained upward movement. Under this scenario, the price of Ether could ascend towards the $2,650 zone.
Is Ethereum Set for Another Downturn?
If Ethereum fails to clear the $2,390 resistance, it could start another decline. Initial support on the downside is near the $2,320 level.
The next key support could be the $2,300 zone. A downside break below the $2,300 support might send the price further lower. In the stated case, Ether could test the $2,250 support. Any more losses might send the price toward the $2,200 level.
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 level.
Major Support Level – $2,300
Major Resistance Level – $2,390