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19/08/24
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Ethereum Faces Downward Pressure: Key Support Levels at Risk
Ethereum has experienced a retreat from the $2,680 resistance level, leading to a decline that poses a risk of further losses if the price fails to maintain above the $2,550 level. The momentum has shifted downward, placing the cryptocurrency under pressure as it trades below the critical support levels.
After struggling to surpass the $2,680 level, Ethereum’s price began to decline, dropping underneath the $2,650 resistance. This downturn saw it breach the 23.6% Fibonacci retracement level, which marked a pullback from the recent rise that peaked at $2,682 following a low of $2,514. Currently, the price remains constrained, as it continues to trade below both the $2,650 level and the 100-hourly Simple Moving Average, indicating a bearish trend.
Support appears to be forming around the $2,610 area, where a crucial bullish trend line has emerged on the hourly chart. While there is potential for an upward correction, Ethereum will face significant hurdles around the $2,650 resistance before challenging the $2,680 level again. A successful close above $2,680 could open the door for a rally towards the $2,720 resistance, with prospects of reaching as high as $2,880 should this upward momentum continue.
Conversely, should Ethereum fail to break through the $2,680 resistance, it risks further declines. The immediate support levels to watch are approximately $2,620 and $2,600—this latter level represents the 50% Fibonacci retracement of the recent upward movement. If the price slips beneath $2,600, it may fall toward the $2,550 support, where buying interest could emerge. Additional losses could push the price even lower towards $2,500, with the next substantial support level situated around $2,440.
This current market condition reflects a growing bearish sentiment, with key indicators showing a weakening momentum in price.
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