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13/09/24
19
Ethereum Eyeing Breakout: Navigating Resistance at $2,400
Ethereum continues to trade positively above the $2,300 level, showing potential for further gains if it can surpass the $2,380 resistance level. The cryptocurrency is currently hovering around $2,320 while establishing a strong technical foundation with support from the 100-hourly Simple Moving Average.
Despite the overall positive trends, Ethereum is encountering resistance near the $2,400 area, which poses a significant hurdle for upward momentum. Recent price action has revealed that a contracting triangle pattern is being formed, indicating that a breakout could occur if the price crosses the $2,365 resistance on the hourly chart. Clearing the $2,400 barrier would likely open the path to higher targets.
Looking ahead, the first major resistance levels are situated around $2,380 and $2,400. A successful breach of these levels could propel Ethereum toward the $2,465 level, with the potential to reach $2,550 subsequently. If momentum continues to build and surpasses $2,550, the next significant resistance level could extend to $2,650.
Conversely, if Ethereum fails to break through the $2,400 resistance, there is a risk of a downturn. Initial support is seen at $2,320, while a drop below the critical $2,300 level could signal further declines. The next support levels to watch would be around $2,250, and potentially down to $2,200 if downward pressure persists, with a more substantial support at $2,120.
Technical indicators suggest that while momentum in the bullish zone is diminishing, the relative strength index (RSI) remains above the neutral level. As the market weighs both the bullish and bearish scenarios, traders will be closely monitoring these key levels for future movements in Ethereum’s price.
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