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29/08/24
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Ethereum’s Path: Breaking Resistance at $2,550 for Potential Recovery
Ethereum recently tested the $2,400 mark but managed to recover some of its losses. For a significant upward movement in the near future, Ether needs to break past the resistance level of $2,550. Following a notable decline, the cryptocurrency has entered a consolidation phase, fluctuating below the $2,550 threshold and also under the 100-hour Simple Moving Average.
Currently, a bearish trend line has formed with an identified resistance at $2,555 on the hourly chart. If the price can overcome both the $2,555 and $2,600 resistance points, it may initiate a recovery. Recently, Ethereum saw a dip below the $2,650 level, falling below both the $2,550 and $2,500 support regions. However, buying interest emerged around the $2,400 range, where the price found some stability.
Having recorded a low of $2,394, Ethereum has enjoyed a slight rebound, showing movements past the $2,450 and $2,480 levels. This upward movement broke through the 23.6% Fibonacci retracement level of the decline from a peak of $2,820. Nonetheless, the price remains constrained under the $2,550 level, where resistance is prominent, due in part to the formation of the downward trend line.
The primary resistance to watch now sits around $2,600, which aligns with the 50% Fibonacci retracement of the previous downward movement. Should the price close above this resistance, it could pave the way for an advance towards $2,665. Additional resistance exists near $2,720, and overcoming this could lead to further upward momentum toward the $2,820 mark.
Conversely, if Ethereum is unable to surpass the $2,555 resistance, it risks initiating another downward trend. The initial support level is positioned around $2,480, with stronger support near $2,450. A decisive drop below this could lead to a target around $2,425, which may attract buying interest. Continued losses could eventually see Ethereum testing the $2,320 support level, followed by a critical support near $2,250.
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