The price of Ethereum has begun a new decline, dropping below the $2,620 threshold. Currently, ETH is consolidating its losses and remains vulnerable to further declines beneath the $2,500 mark. The cryptocurrency has fallen below the $2,600 level, trading under $2,540 and the 100-hour Simple Moving Average. On the hourly chart for ETH/USD, a rising channel is forming, with support identified at $2,480.
Ethereum's price trajectory mirrors that of Bitcoin, as it has also dipped below critical levels of $2,600 and $2,550, ultimately falling under the $2,500 mark. The asset tested the $2,450 range before entering a consolidation phase, briefly surpassing the $2,500 level. This minor uptick allowed the price to rise past the 23.6% Fibonacci retracement level, calculated from the recent high of $2,680 to the low of $2,455. However, Ethereum is still trading below $2,550 and the 100-hourly Simple Moving Average.
On the upside, Ethereum may encounter resistance close to the $2,540 level, with a significant resistance point at around $2,565, which aligns with the 50% Fibonacci retracement of the downward movement from $2,680 to $2,455. A decisive move beyond the $2,625 resistance could propel the price towards the $2,680 resistance level. Should Ethereum break past this resistance, it might aim for higher targets, potentially reaching the $2,800 or even $2,880 zones in the near future.
However, if Ethereum is unable to surpass the $2,540 resistance, it risks initiating a further decline. The initial support level on the downside is located near $2,480, with a major support level at around $2,450. A significant drop below this support could lead to a decline towards the $2,320 level, and any continued losses may push the price down to approximately $2,240. The next key support level is at $2,150.
Technical indicators reveal that the hourly MACD for ETH/USD is losing momentum within the bearish territory, while the hourly RSI indicates a position below the 50 mark, suggesting bearish sentiment in the market.
Major Support Level: $2,450
Major Resistance Level: $2,540
