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08/08/24
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Ethereum Faces Resistance at $2,550: Bears Eye Further Declines
Ethereum’s price has struggled to maintain momentum and has failed to break through the resistance zone at $2,550. Currently consolidating around $2,450, the cryptocurrency is displaying a few bearish signals that may impact its near-term performance.
The recent recovery attempt saw Ethereum rise above the $2,400 and $2,420 levels, but enthusiasm waned as it approached the $2,550 resistance. After reaching a high of $2,555, Ethereum experienced a pullback, dropping below the critical $2,450 threshold and also dipping beneath the 23.6% Fibonacci retracement level of its upward movement from a low of $1,911 to the recent high. This downturn was further complicated by a breakdown of a bullish trend line that held support around $2,500.
At this stage, Ethereum is still trading below both the $2,550 resistance and its 100-hourly Simple Moving Average. The primary barrier ahead includes the nearby $2,500 level, with the $2,550 level continuing to act as a significant resistance. A successful break above $2,550 could propel Ethereum’s price towards the next resistance region at $2,685, and potentially up to $3,000 if bullish momentum continues.
On the downside, a failure to surpass the $2,550 resistance could lead to further declines for Ethereum. Initial support is identified around $2,350, with a more substantial support level situated near $2,300. If the price falls decisively below this mark, it could trigger a move toward $2,150, coinciding with the 61.8% Fibonacci retracement level from its recent movement. Additional losses could bring the price down to the $2,120 support level, with $2,050 as the next critical support target.
In terms of technical indicators, the hourly MACD is gaining bullish momentum, while the RSI remains above the neutral 50 level, suggesting that market dynamics could shift in favor of either bulls or bears in the coming sessions.
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