Ethereum Faces Challenges, But Buyers Work to Maintain Key Support Levels

Ethereum's price experienced a new decline below the $2,880 mark. Currently, ETH is attempting to rebound from $2,720, but the bulls may encounter resistance as they strive to push the price higher.

Key Takeaways

Ethereum's price has dipped below $2,880 and $2,800, entering a bearish zone.
Currently trading below $2,850 and the 100-hourly Simple Moving Average.
A short-term bearish trend line caps resistance at $2,820 on the ETH/USD hourly chart.
A recovery above the $2,850 mark could indicate upward movement.

Ethereum Price Dips Further

Ethereum's Price Recovery Efforts

Recently, Ethereum's price struggled to maintain its position above $2,950, similar to the situation with Bitcoin. As a result, ETH prices fell below $2,880, indicating the start of a bearish trend. The decline continued, pushing prices below $2,800, hitting a low of $2,718. At this stage, the price is trying to recover, having moved above the $2,750 threshold and breaching the 23.6% Fibonacci retracement level from the recent high of $3,052 down to the low of $2,718.

Currently, Ethereum remains below the $2,850 mark and the 100-hourly Simple Moving Average. Should there be another upward movement, the price is likely to encounter resistance near the $2,820 area. Additionally, a short-term bearish trend line has formed, also indicating resistance at the $2,820 level on the hourly ETH/USD chart.

Ethereum Price
Source: ETHUSD on TradingView.com

The next significant resistance lies around the $2,880 level, corresponding to the 50% Fibonacci retracement of the drop from the swing high of $3,052 to the low of $2,718. The first major resistance level is at $2,920. A decisive move above $2,920 could propel the price toward the $3,000 mark. A breakthrough of the $3,000 region might set the stage for further advancements, potentially taking Ether up to the $3,050 resistance zone or even as high as $3,150 in the near future.

Will Ethereum Experience a Further Decline?

Should Ethereum fail to overcome the $2,880 resistance, it may initiate another downturn. Initial support on the downside is located around the $2,760 level, while major support rests near the $2,740 zone. If the price drops below the $2,740 support level, it could fall to the $2,720 region. Continued losses may lead to a decline toward the $2,650 area in the near term. The next critical support levels are expected at $2,550 and $2,500.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is losing momentum and remains in the bearish zone.
Hourly RSI: The RSI for ETH/USD is now situated below the 50 mark.
Major Support Level: $2,720
Major Resistance Level: $2,880