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28/08/24
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Ethereum Faces Critical Support Challenge as Price Dips Below $2,550
Ethereum’s price has experienced a significant downturn, dipping below the $2,550 level. This drop has raised concerns, particularly as it has now fallen below the critical support level of $2,400. For any potential recovery, the cryptocurrency must maintain its position above this support zone.
In recent trading sessions, Ethereum demonstrated a sharp decline, moving away from the $2,650 and $2,550 marks. The current trading price is situated beneath both the $2,550 level and the 100-hour Simple Moving Average. An emerging bearish trend line has been noted, presenting resistance at the $2,575 level, indicating significant hurdles for upward movement.
After reaching a low of $2,394, Ethereum has struggled to regain its footing. A brief recovery attempt brought the price back to around $2,420 to $2,440, which corresponds with a 23.6% Fibonacci retracement of its recent decline from a high of $2,820. Yet, the ongoing trading conditions below $2,550 suggest that challenges remain unless the price can rally above this resistance, potentially pushing toward the $2,600 level along with the 50% Fibonacci retracement.
Investors should also be mindful of the key resistance around $2,660. A decisive breakout above this level could indicate a bullish trend, possibly leading the price toward the $2,880 area. Conversely, should Ethereum fail to breach the $2,500 resistance, further declines may follow. The initial support floor is identified at $2,420, followed closely by the critical $2,400 level. A breach below this support could lead to extended declines to $2,350 or even lower to $2,220 and $2,150 levels, where buying interest may reemerge.
Key technical indicators, including the hourly MACD and RSI, reflect ongoing bearish momentum, suggesting a cautious outlook for Ethereum in the short term.
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