Ethereum’s price trajectory has taken a concerning turn as it struggles to maintain momentum above key support levels. The second-largest cryptocurrency by market cap is showing signs of weakness after failing to breach the $2,800 resistance zone.
Current Market Situation
ETH has entered a fresh decline phase, dropping below the critical $2,720 level. The price action shows increased selling pressure, with ETH trading below both $2,700 and the 100-hourly Simple Moving Average. This technical breakdown suggests bears are gaining control of the market.
Technical Analysis Deep Dive
Several key technical indicators paint a bearish picture:
- A significant bearish trend line break occurred at $2,680
- Price retraced below the 50% Fibonacci level from $2,614 to $2,791
- The MACD shows increasing bearish momentum
- RSI remains below the 50 mark, indicating bearish control
Support and Resistance Levels
Traders should watch these crucial price points:
- Key resistance: $2,720, $2,800, and $2,880
- Critical support: $2,650, $2,615, and $2,550
- Ultimate support: $2,500 and $2,440
Market Implications
The current price action suggests two possible scenarios. A recovery above $2,720 could trigger a relief rally toward $2,800. However, failure to hold above $2,650 might accelerate the downward momentum.
Trading Opportunities
Risk-aware traders might consider:
- Short positions below $2,650 with targets at $2,550
- Long positions if price stabilizes above $2,720
- Setting stop-losses based on the mentioned support/resistance levels
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The next 24-48 hours will be crucial for ETH’s price direction. Traders should maintain strict risk management practices given the current market volatility.
Tags: #Ethereum #ETHPrice #CryptoTrading #TechnicalAnalysis #CryptoMarkets
Source: NewsBTC