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30/08/24
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Ethereum’s Price Struggles to Break $2,600 Resistance Amidst Recovery
Ethereum’s price has begun to recover from the $2,400 level, but it faces challenges in overcoming the resistance at $2,600. The cryptocurrency has shown some positive movement, rising past the $2,500 and $2,550 levels, yet it remains under pressure, trading below $2,550 and the 100-hourly Simple Moving Average.
The recent rebound saw Ethereum surpass the $2,480 and $2,500 resistance levels, indicative of a broader trend seen across the cryptocurrency market. Additionally, the price increased beyond the 23.6% Fibonacci retracement level stemming from the previous decline, supporting a positive outlook. A significant breakthrough occurred as the price moved above a major bearish trend line at $2,550. However, the upward momentum faced considerable resistance as bears became active near the $2,600 level, thwarting efforts to maintain upward progress.
Currently, Ethereum is trading below $2,580, contending with hurdles at both the $2,550 level and the 100-hourly Simple Moving Average. The immediate resistance at $2,600 is crucial; a sustained close above this level could propel Ethereum towards the $2,660 resistance, with a subsequent target of $2,720. A decisive break past $2,720 might encourage movement towards $2,820 in the near future.
Conversely, if Ethereum struggles to breach the $2,600 resistance, it could face a potential decline. Initial support is positioned around $2,500, followed by critical support close to $2,485. Should the price drop below $2,485, further declines could lead it down to $2,420, where buying interest may emerge. Continued adverse movement could see the price testing the $2,320 support level, with $2,250 as a subsequent key support zone.
Technical indicators reflect a waning bullish momentum, with the MACD losing strength and the Relative Strength Index (RSI) sitting below the neutral zone, suggesting a cautious outlook for Ethereum in the near term.
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