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03/09/24
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Ethereum’s Recovery: Key Resistance at $2,550 on the Horizon
Ethereum is currently in the midst of a recovery attempt, bouncing back from the $2,400 level. For this upward movement to gain traction, it is essential for ETH to surpass the $2,550 level in the near term.
Recently, Ethereum had struggled below the $2,500 level, even dipping to test the crucial support at $2,400. However, signs of bullish strength began to emerge as the price rebounded above $2,450. This recovery saw Ethereum breaking through previous resistance levels at $2,480 and $2,500 and moving beyond the 50% Fibonacci retracement level, which reflects a potential shift in momentum from the recent decline that started from a high of $2,595. A significant signal of recovery was witnessed with the breach of a bearish trend line, further substantiating ETH’s upward trajectory.
As Ethereum trades above the $2,500 mark and the 100-hourly Simple Moving Average, it faces its first notable resistance near $2,550. This level coincides with the 76.4% Fibonacci retracement of the earlier downward movement, posing a significant hurdle for further gains. Should the momentum continue, a successful break above $2,600 could escalate the price towards $2,650 and possibly $2,720, while an upward movement beyond this critical resistance may lead to attempts at reaching the $2,800 resistance zone.
Conversely, if Ethereum encounters difficulties in overcoming the $2,550 resistance, it could risk a decline. Initial support resides at $2,495, with the more significant support level at $2,450. A decisive dip below this level could prompt further losses, pushing the price down towards $2,400, where buying interest may resurface, or even as low as $2,320 if bearish sentiment escalates. The next major support level is positioned at $2,250.
Overall, Ethereum’s next critical moves will depend heavily on its ability to hold above $2,500 and clear the $2,550 resistance.
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