Important Points:
– Ethereum is facing resistance at the $2,750 level and must stay above $2,400 for an upside break.
– The price is below a crucial bearish trend line at $2,850 on the daily chart.
– If the price falls below $2,440, it could decline further towards $2,050.
Ethereum (ETH) continues to struggle below the $2,750 level, and there is a possibility of another decline if it fails to settle above this key resistance.
Over the past few days, Ethereum experienced a decent increase above the $2,500 resistance zone, similar to Bitcoin. It managed to climb above the $2,620 and $2,650 resistance levels. Additionally, there was a close above the 23.6% Fibonacci retracement level of the downward move from the $3,566 swing high to the $2,099 low.
However, the bulls were unable to clear the crucial hurdle at $2,750 and the price corrected some of its gains. The previous two daily candles indicate a short-term exhaustion in the uptrend.
On the daily chart, Ethereum is slowly moving lower below the $2,650 level, but it remains above the 50-day simple moving average. More significantly, it is still below an important bearish trend line with resistance at $2,850.
Based on the current price action, it seems likely that the price might dip further below the $2,600 level. The immediate support is around $2,550, followed by the major support at $2,500. Another support level is near $2,440, along with a connecting bullish trend line on the same chart.
If the price closes below $2,440, it could potentially drop towards the $2,320 support. A failure to defend this support level may result in a decline below $2,150, with the next significant support at around $2,050.
On the other hand, if Ethereum manages to stay stable above $2,600 or $2,440, it could attempt a fresh increase. In terms of resistance, the price could face obstacles around the $2,700 level, followed by a major resistance at $2,750.
Furthermore, there is another resistance level at $2,850, which coincides with the bearish trend line and the 50% Fibonacci retracement level of the downward move from the $3,566 swing high to the $2,099 low. A clear move above $2,850 could potentially open the doors for a move towards $3,000.
If the ETH bulls manage to push the price above the $3,250 resistance, there may be a strong increase, potentially reaching the $3,550 level.
Overall, Ethereum is currently struggling to settle above $2,750. If the price falls below $2,440, there is a possibility of a larger decline towards $2,050 in the coming days.
