Ethereum (ETH) is showing signs of renewed strength as the second-largest cryptocurrency attempts to break through critical resistance levels. After initiating a recovery from the $2,470 support zone, ETH bulls are now targeting the crucial $2,660 barrier that could determine the next major price movement.
Key Technical Developments for Ethereum
The recent price action has been particularly noteworthy, with Ethereum ETFs experiencing significant inflows over the past 11 days, providing fundamental support for the current recovery attempt. Key technical developments include:
- Successful break above the psychological $2,500 level
- Price maintaining position above the 100-hourly Simple Moving Average
- Breach of the 50% Fibonacci retracement level from $2,788 high to $2,470 low
- Formation of a critical support zone at $2,545
Critical Resistance Levels to Watch
Traders should focus on these key resistance levels:
- Immediate resistance: $2,620
- Major barrier: $2,660 (61.8% Fibonacci retracement)
- Secondary target: $2,720
- Ultimate bullish target: $2,880
Potential Downside Scenarios
If bulls fail to overcome the $2,660 resistance, ETH could face several support tests:
- Primary support: $2,545
- Critical level: $2,500
- Secondary support: $2,470
- Last line of defense: $2,420
Technical Indicators and Market Sentiment
Current technical indicators present a mixed picture:
- MACD: Showing increasing bearish momentum
- RSI: Hovering around the neutral 50 zone
- Moving Averages: Price holding above 100-hourly SMA
FAQ Section
What is the next major resistance level for Ethereum?
The next significant resistance level is at $2,660, which coincides with the 61.8% Fibonacci retracement level.
Where is the critical support zone for ETH?
The critical support zone is established at $2,545, with additional support at $2,500.
What technical indicators should traders watch?
Traders should monitor the MACD for momentum shifts, the RSI for overbought/oversold conditions, and the 100-hourly SMA for trend direction.
As Ethereum continues to navigate these critical price levels, traders should maintain strict risk management and watch for clear breakout signals above $2,660 or breakdown below $2,545 to confirm the next significant move.