Key Points:
– Ethereum is facing resistance at the $2,750 level and needs to stay above $2,400 for an upside break.
– The price is below a bearish trend line with resistance at $2,850 on the daily chart.
– If the price falls below $2,440, it could decline further towards $2,150.
– On the upside, resistance levels are at $2,700, $2,750, and $2,850.
– A move above $2,850 could lead to a rise towards $3,000 and potentially $3,550.
Ethereum (ETH) is still encountering difficulties breaking above the $2,750 level and may face a decline if it fails to surpass this resistance.
In recent days, Ethereum experienced a moderate increase above the $2,500 resistance zone, similar to Bitcoin. It managed to climb above the $2,620 and $2,650 resistance levels. The price closed above the 23.6% Fibonacci retracement level of the previous downward movement from the $3,566 swing high to the $2,099 low.
However, the bulls were unable to overcome the significant hurdle at $2,750. The price even failed to test the resistance and underwent a corrective phase. The last two daily candles indicate a temporary exhaustion of the upward trend.
On the daily chart, Ethereum is slowly declining below the $2,650 level but is still comfortably above the 50-day simple moving average (blue line). More importantly, it remains below a crucial bearish trend line with resistance at $2,850.
Based on the current price action, there is a possibility of a further dip below the $2,600 level. Immediate support can be found near the $2,550 level, followed by a major support level at $2,500. Another support is located around the $2,440 level, which coincides with a bullish trend line on the same chart.
If the price closes below the $2,440 level, it could potentially drop towards the $2,320 support. Failure to defend this support may result in a decline below the $2,150 support level. The next significant support is around $2,050.
Conversely, if Ethereum manages to remain stable above $2,600 or $2,440, it may attempt a fresh increase. On the upside, the price could encounter resistance near the $2,700 level, followed by a major resistance at $2,750.
Further resistance levels to watch out for are at $2,850, the bearish trend line, and the 50% Fibonacci retracement level of the previous downward movement. A clear breakthrough above $2,850 could potentially pave the way for a move towards $3,000.
If the ETH bulls push the price above the $3,250 resistance, a strong increase may occur. In this scenario, the price could rise towards the $3,550 level.
To conclude, Ethereum is currently struggling to settle above the $2,750 level. If the price falls below $2,440, there is a possibility of a larger decline towards $2,050 in the coming days.