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06/09/24
23
Ethereum Faces Critical Resistance as It Seeks Support Recovery
Ethereum is currently trying to rebound from a support level around $2,350, but it must overcome various hurdles to maintain upward momentum. The cryptocurrency is presently trading below $2,440 and has encountered resistance near the 100-hourly Simple Moving Average.
After initially attempting to rise above $2,440, Ethereum could not surpass the $2,500 level, peaking at approximately $2,488 before retracing. Following this failed rally, the price dropped back to test the $2,350 support level, forming a low at $2,347. The recent recovery has seen the price move past the $2,365 and $2,380 levels, breaching the 23.6% Fibonacci retracement level from the decline experienced between the $2,488 high and the $2,347 low.
Despite these upward moves, Ethereum continues to face significant resistance at around $2,400, where a bearish trend line also exists. The next important threshold is the $2,440 level, which corresponds to the 61.8% Fibonacci retracement of the aforementioned downward movement. A close above this resistance could pave the way for Ethereum to target the $2,500 resistance level.
If the price manages to break through the $2,550 resistance area, it could eventually rise toward the $2,720 region. Conversely, if Ethereum struggles to breach the $2,440 resistance, it might start a downward trend. Initial support lies at $2,365, while further significant support is at $2,350. A strong move below the $2,350 level could bring the price down to the $2,310 support level, with worse outcomes potentially leading to a decline towards $2,250 or even $2,120.
In summary, Ethereum’s current challenges revolve around breaking through critical resistance levels while also ensuring support holds up to avoid further declines.
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