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12/08/24
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Ethereum Faces Critical Support Challenge Amidst Price Correction
Ethereum’s price has recently entered a corrective phase, retreating from a high near $2,700. Currently, the cryptocurrency is experiencing a consolidation phase and is facing challenges in maintaining stability above the critical $2,500 support level.
After peaks above $2,650 were achieved, Ethereum’s price began to trend downwards, dipping below both $2,650 and the important $2,620 threshold. This shift indicates a break from bullish momentum, with the price now lying under both the $2,650 mark and the bullish trend indicated by the 100-hourly Simple Moving Average. As a result, there has been a significant decline attributed to the breach of a bullish trend line that provided support around $2,620.
The recent price action has seen Ethereum hover just above the $2,550 mark, raising concerns about its near-term direction. A sustained decline below this level would pose risks of further depreciation. A rebound could encounter resistance around the $2,600 level as well as from the 100-hourly Simple Moving Average. The first notable hurdle that must be overcome is situated at approximately $2,625. A successful breakout above this resistance could facilitate a rise towards the $2,700 territory.
Conversely, if Ethereum fails to overcome the $2,625 barrier, it may continue its downward trajectory. Immediate support can be found around the $2,520 mark, coinciding with the 50% Fibonacci retracement level derived from previous price movements. Should the asset fail to hold above $2,500, it could lead to further decline, with potential targets at $2,450 and ultimately $2,320. Support levels are closely monitored as traders assess the possibility of a rebound or additional decline in the market.
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