Ethereum’s price has recently faced another setback, failing to sustain its upward momentum above the crucial $2,880 resistance level. The second-largest cryptocurrency by market capitalization is now trading below $2,700 and the 100-hourly Simple Moving Average, indicating a potential continuation of the downtrend. This bearish sentiment has raised concerns among investors and traders alike, as they speculate on the future trajectory of ETH.
The recent decline in Ethereum’s price can be attributed to several factors. Firstly, the bears have shown significant strength above the $2,800 level, effectively suppressing any attempts at a sustained recovery. Additionally, there is a connecting bearish trend line forming with resistance at $2,680 on the hourly chart of ETH/USD, further reinforcing the negative outlook.
If Ethereum fails to clear the $2,700 resistance level, it could trigger another wave of selling pressure. In such a scenario, initial support is expected around the $2,525 level, followed by a major support zone near $2,440. A clear break below this critical support could see ETH’s price plummet towards $2,320 or even lower to $2,250 in the near term.
On the other hand, if Ethereum manages to stage a recovery and break above the $2,700 level, it could encounter resistance around $2,880 or $2,920. A decisive move beyond this resistance zone might open the doors for a retest of the $3,000 psychological level. In the most bullish case, Ether could potentially rise towards the $3,050 resistance zone or even $3,120 in the coming sessions.
From a technical perspective, the MACD indicator for ETH/USD is gaining momentum in the bearish zone, while the RSI has dipped below the 50 level, suggesting that bears currently have the upper hand. Traders should keep a close eye on these key levels and indicators to gauge the short-term direction of Ethereum’s price.
The current downtrend in Ethereum’s price has broader implications for the cryptocurrency market as a whole. As the second-largest cryptocurrency, ETH’s performance often influences the sentiment surrounding other altcoins. A prolonged decline in Ethereum’s value could lead to a general market downturn, while a strong recovery might inspire confidence and encourage bullish sentiment across the board.
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In conclusion, Ethereum’s price is at a critical juncture, with the potential for further downside if key support levels are breached. However, a successful break above the $2,700 resistance could pave the way for a recovery towards $3,000 and beyond. As always, investors and traders should exercise caution, maintain appropriate risk management strategies, and stay informed about the latest market developments.
Tags: Ethereum, ETH, ETHUSD, Ethereum Price, Crypto Market
Source: https://www.newsbtc.com/analysis/eth/ethereum-price-declines-again-2525/