Ethereum struggled to break above key resistance levels amidst the broader market downturn
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, encountered challenges as it struggled to break above key resistance levels amidst the broader market downturn. The following analysis explores the recent price movement of Ethereum and identifies potential factors influencing its current trajectory.
Struggling Against Key Resistance Levels
Ethereum faced a notable setback as it attempted to surpass crucial resistance levels at $2,550 and $2,580. Despite initial efforts, ETH formed a short-term peak, initiating a fresh decline that took it below the $2,500 mark—mirroring the downward trend observed in Bitcoin.
Consolidation and Weekly Lows
After slipping below the $2,450 level, Ethereum established a new weekly low at approximately $2,424. The current market conditions indicate a consolidation phase, with a slight uptick above $2,450. However, bears showed resilience near the 23.6% Fibonacci retracement level of the recent downward move—from the $2,614 swing high to the $2,424 low.
Technical Outlook and Hurdles
As Ethereum trades below $2,500 and the 100-hourly Simple Moving Average (SMA), it faces immediate resistance around the $2,465 level. Further hindrance is evident with a connecting bearish trendline forming resistance near $2,480, as depicted on the hourly ETH/USD chart.
Critical Levels and Potential Upside
The next major obstacle for Ethereum is anticipated around $2,520, followed by a critical resistance point near $2,580. A decisive move above $2,520 may pave the way for a significant upward trajectory. In such a scenario, the price could aim for the $2,580 level, signaling a potential recovery.
However, the crypto market’s volatility and the prevailing bearish trendline emphasize the importance of closely monitoring Ethereum’s price movements in the coming days. Traders and investors are advised to stay vigilant in response to potential shifts in market sentiment.
As Ethereum grapples with resistance levels and undergoes consolidation, the cryptocurrency market’s overall dynamics continue to play a crucial role in determining its short-term trajectory. The coming sessions will shed light on whether Ethereum can overcome these hurdles and chart a path towards recovery or if further downside pressure persists.