Key Points:
– Ethereum continues to face resistance at the $2,750 level and may experience a decline if it fails to break through.
– The price is currently below a significant bearish trend line with resistance at $2,850 on the daily chart.
– To attempt an upward break above $2,750 and $2,850, the price must stay above $2,400.
Ethereum (10)
Ethereum (ETH) is still encountering difficulties in surpassing the $2,750 level. If it fails to establish itself above this level, the price could potentially decrease.
Challenges for Ethereum Price
Over the past few days, Ethereum witnessed a notable increase above the $2,500 resistance zone, similar to Bitcoin. ETH managed to rise above the resistance levels at $2,620 and $2,650. Additionally, it closed above the 23.6% Fibonacci retracement level of the downward movement from the $3,566 swing high to the $2,099 low.
However, the bulls were unable to overcome the significant obstacle at $2,750. The price even failed to test the resistance level at $2,750 and experienced a correction in its gains. The last two daily candles indicate a short-term exhaustion of the upward trend.
Ethereum price daily chart | Source: ETH/USD on TradingView.com
Ethereum is gradually moving lower below the $2,650 level, but it remains comfortably above the 50-day simple moving average (blue line). More importantly, it is still below a critical bearish trend line with resistance at $2,850 on the daily chart.
Based on the current price action, it appears that the price may dip further below the $2,600 level. Immediate support can be found near the $2,550 level, followed by major support near $2,500. Furthermore, there is a connecting bullish trend line on the same chart, which provides additional support near the $2,440 level.
If the price closes below the $2,440 level on a daily basis, it could potentially drop to the $2,320 support. Failing to defend the $2,320 support may even result in a decline below the $2,150 support. The next significant support level is located near $2,050.
Possibility of a Fresh Increase in ETH?
Alternatively, Ethereum may maintain stability above $2,600 or $2,440 and attempt a fresh increase. On the upside, the price could face resistance at the $2,700 level. The first major resistance lies near the $2,750 pivot level.
The following resistance level is situated near $2,850, which coincides with the bearish trend line and the 50% Fibonacci retracement level of the downward movement from the $3,566 swing high to the $2,099 low. If the price successfully breaks above the $2,850 level, it could pave the way for a move towards $3,000.
Further hurdles may be encountered near the $3,220 and $3,250 levels. If ETH bulls manage to push the price above the $3,250 resistance, a significant increase is possible. In this scenario, the price could rise towards the $3,550 level.
Overall, Ethereum price is facing challenges in settling above $2,750. If the price drops below $2,440, a larger decline towards $2,050 may be expected in the coming days.