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09/09/24
23
Ethereum Eyes Recovery: Key Resistance Levels to Watch as It Battles Below $2,320
Ethereum is currently in the process of attempting a recovery after dipping to around the $2,150 level. The cryptocurrency is trading below the $2,320 level and remains beneath the 100-hourly Simple Moving Average. Recently, Ethereum managed to surpass a significant bearish trend line, indicating a potential upward movement, particularly as it approached the $2,280 resistance level.
The recovery effort saw Ethereum trying to break above the $2,400 level, but it struggled to overcome resistance at $2,450. Following this attempt, the price fell back below $2,320, mirroring the decline seen in Bitcoin. After a low was established at $2,150, Ethereum is making headway once again, moving past the $2,220 and $2,280 levels, which are critical resistance points. Importantly, the price has exceeded the 23.6% Fibonacci retracement level from the latest downward movement, suggesting a possible rally ahead.
Nonetheless, the $2,320 area is presenting obstacles for further upward progress. The key resistance level to watch is $2,360, aligning with the 61.8% Fibonacci retracement level from the drop that occurred from the $2,488 high to the $2,150 low. A successful close above this resistance may propel Ethereum towards $2,420.
Conversely, if the price fails to surpass $2,360, it could trigger a renewed decline. Initial support appears at the $2,250 level, with a more significant support level located around $2,180. A breach below this level might lead Ethereum back towards the $2,150 support, and potentially even down to $2,050 or $2,000 if the downward trend continues.
Traders will be watching key indicators closely, as the hourly MACD indicates a loss of bearish momentum, whereas the RSI hints at a position above the neutral zone, suggesting potential upward movement if critical resistance levels are surpassed.
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