Ethereum Price Attempts Upside Correction from $2,150 Support
Ethereum price is currently trying to bounce back from the support level at $2,150. If it manages to surpass the resistance at $2,240, the price could gain momentum and continue its upward trend.
In the past trading sessions, Ethereum experienced a decline below the $2,240 support zone, dropping below $2,200. However, the bulls stepped in near the $2,165 level, forming a short-term base for the cryptocurrency.
Bullish Trend Line Breakout Provides Hope for Ethereum Price
During its upside correction, Ethereum managed to break above a bearish trend line with resistance near $2,235. This breakout indicates a potential shift in sentiment. However, the $2,240 resistance level is proving to be a challenge for the bulls.
The bears have strongly defended the $2,240 resistance, preventing further gains. As a result, Ethereum is currently trading below this level and the 100-hourly Simple Moving Average, which presents another obstacle for the cryptocurrency.
Strong Resistance at $2,240, Upside Potential at $2,300
Looking ahead, if Ethereum can overcome the $2,240 resistance level, it has the potential to make significant gains. The next hurdle to watch out for would be near $2,300 or the 100-hourly Simple Moving Average. Breaching this level could open the path for the price to test the 50% Fib retracement level at $2,320.
Should Ethereum break above $2,360, a decent increase in price could be expected. This could propel the cryptocurrency towards the $2,420 level, with the possibility of reaching the $2,500 zone.
Downside Risks: A Reversal in Ethereum Price?
If Ethereum fails to clear the $2,240 resistance, it could experience another decline. The initial support level would be around $2,200, followed by a key support zone at $2,165.
A break below the $2,165 support level could trigger a substantial decline in Ethereum’s price. In this case, the cryptocurrency might test the $2,080 support level, and further losses could send it towards the $2,000 level.
Technical Indicators Show Bearish Momentum for Ethereum
The hourly MACD for ETH/USD currently indicates a loss of momentum in the bearish zone, which suggests that downward pressure may prevail for now.
Additionally, the hourly RSI for ETH/USD is below the 50 level, indicating that the bears have the upper hand in the short term.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. Cryptocurrency investments carry risks, and readers are advised to conduct their own research before making any investment decisions. Use information provided on this website at your own risk.
Analyst comment
This news can be evaluated as neutral. It states that Ethereum is attempting an upside correction and faces strong resistance at $2,240. If it manages to break above this level, it could see significant gains and potentially reach $2,500. On the downside, if it fails to clear the resistance, it may experience another decline towards $2,080 or even $2,000. Technical indicators suggest bearish momentum in the short term. As an analyst, it is expected that the market will remain volatile with a potential for further gains if resistance is overcome.
