Ethereum price is currently undergoing a correction after facing resistance at the $2,320 level. As a result, ETH is moving lower and there is a possibility that it might test the key support level at $2,050 before the bulls regain control.
The price of Ethereum has fallen below the crucial support zone of $2,250 and is currently trading below $2,240 as well as the 100-hourly Simple Moving Average. Looking at the hourly chart of ETH/USD, it is evident that there are two bearish trend lines forming. These trend lines have resistance levels located near $2,230 and $2,260.
Ethereum price started a downside correction from its peak at $2,325. During this correction, ETH declined below the $2,300 and $2,265 levels. In fact, the bears were able to push the price below the critical $2,200 level. However, there is a silver lining as the price is now attempting a fresh increase and has climbed above the $2,200 level.
On the upside, Ethereum price is facing resistance near the $2,230 level. The hourly chart also shows that there are two bearish trend lines with resistance levels close to $2,230 and $2,260. The second trend line coincides with the 50% Fib retracement level of the downward move from the $2,326 swing high to the $2,180 low. If the price manages to break above the $2,260 resistance, it could rally towards $2,325.
The main resistance level for Ethereum is set at $2,350. A clear and decisive move above this level could initiate a significant increase in price. Following a successful breach of $2,350, the next resistance level lies at $2,420, above which Ethereum might rally and test the $2,500 zone. However, if Ethereum fails to clear the $2,260 resistance, it might trigger a fresh decline.
Initial support for Ethereum on the downside can be found near the $2,200 level. The first key support level is set at $2,180. A break below this level could lead to more bearish moves, potentially causing Ether to revisit the $2,120 support. Further losses may push the price towards the $2,050 level.
Analyzing the technical indicators, the MACD for ETH/USD is losing momentum in the bearish territory. Additionally, the RSI for ETH/USD is now below the 50 level, indicating a negative sentiment in the market.
Ethereum price is undergoing a correction and might test the support level at $2,050. The presence of bearish trend lines and the failure to break key resistance levels pose challenges for Ether. With the MACD losing momentum and the RSI below 50, the overall outlook remains bearish. Traders and investors are advised to conduct thorough research and analysis before making any investment decisions as the cryptocurrency market carries inherent risks.