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15/08/24
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Ethereum Faces Resistance at $2,750: Risks of Further Declines Loom
Ethereum’s price has hit a stumbling block around the $2,750 resistance level, which has led to a consolidation phase near the $2,635 level. This current positioning raises concerns about potential further declines for the cryptocurrency.
After experiencing a rally from the $2,650 support zone, Ethereum (ETH) initially exhibited stronger performance compared to Bitcoin, eventually overcoming the $2,720 resistance level. However, the upward momentum waned as selling pressure intensified near the $2,750 level. The highest price point reached was $2,763, but shortly thereafter, ETH began to retrace its gains, dropping below significant levels of $2,720 and $2,700. A critical shift occurred when the price fell beneath a key contracting triangle, identifying a crucial support point at $2,695.
Currently, Ethereum is trading below the $2,700 level and the 100-hourly Simple Moving Average. A notable low was established around $2,635, where the price is now consolidating. Should ETH attempt to rebound, it may encounter resistance near $2,700, coinciding with the 50% Fibonacci retracement level of its recent downward movement. The main point of resistance is expected around $2,735, which aligns with the 76.4% Fibonacci retracement, and a significant breakout above this level could direct Ethereum towards the next resistance at $2,765.
Conversely, if Ethereum fails to breach the $2,700 resistance, it may face renewed downward pressure. Immediate support appears to be near $2,635, while further support lies around the $2,600 level. A drop below this level could usher in more losses, potentially steering the price towards $2,550 and then $2,520, with more substantial support observed at $2,440. The technical indicators reveal a loss of momentum in the bullish zone, indicating caution for potential investors.
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