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11/10/24
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Ethereum Faces Resistance: Will It Break Above $2,420?
Ethereum’s price has struggled recently, extending its losses and testing the critical support level at $2,320. However, the cryptocurrency has begun a slight recovery and may be targeting a rise above the resistance at $2,420.
Currently, Ethereum remains in a negative trend, trading below the $2,360 level and under the 100-hourly Simple Moving Average. A bearish trend line has formed, indicating pressure at the $2,420 level on the hourly chart. For Ethereum to initiate a significant uptrend, it needs to maintain its position above the $2,350 support.
The cryptocurrency could not establish a new upward movement beyond the resistance zone of $2,450, mirroring the bearish activity observed in Bitcoin. The price dipped below $2,350 and tested the $2,320 support level, reaching a low of $2,329. Since then, prices have recovered slightly, climbing above $2,350 and approaching the 23.6% Fibonacci retracement level of the downward movement from the $2,468 high to the recent low.
Nevertheless, Ethereum remains positioned below $2,420 and continues to face obstacles around this level. The emergence of a connecting bearish trend line near the $2,420 threshold adds to the resistance, which closely aligns with the 61.8% Fibonacci retracement of the recent decline. A decisive breakout past this level could propel Ethereum toward the $2,450 level, with potential gains leading to the $2,500 resistance area in the near term.
Conversely, if Ethereum cannot break through the $2,420 resistance, it may experience further declines. Initial downside support lies at the $2,380 level, with more significant support at $2,350. Should the price fall below this level, it could test the $2,320 support again, with further losses potentially driving it down to the $2,265 area, and subsequent key support at $2,220.
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