Ethereum's price has initiated a recovery phase, moving above the $2,550 mark, although it encounters significant challenges around the $2,880 level.
The cryptocurrency has started to rebound after experiencing a steep decline below $2,500, in contrast to Bitcoin's performance. Ethereum's price moved past the $2,500 and $2,550 resistance thresholds, reaching beyond the 50% Fibonacci retracement level between the $3,402 swing high and the $2,127 swing low. Yet, bearish forces are evident near the $2,900 area.
The price remains below the 61.8% Fibonacci retracement level of the same downward move. Additionally, a short-term descending channel is forming, with resistance identified at $2,800, as observed in the hourly chart of ETH/USD (sourced from Kraken).
Currently, Ethereum's price is trading under both the $2,880 mark and the 100-hour Simple Moving Average. Resistance persists near $2,800 as the price attempts to advance.
The first significant resistance is anticipated near the $2,880 level, with major resistance forming around $2,920. A decisive breakthrough above $2,920 could propel the price towards the $3,000 resistance level. Should this occur, Ethereum might experience further gains, potentially reaching the $3,120 or even $3,250 resistance zones in the near future.
Failure to surpass the $2,880 resistance might result in Ethereum entering another downtrend. Initial support is located approximately at the $2,640 level, with the first major support near $2,550. Breaking below $2,550 could push the price towards the $2,500 support level. Additional declines might see the price approach the $2,420 support level, with the subsequent critical support at $2,350.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.