Ethereum’s recent price surge above the $2,500 mark has been followed by a correction, prompting the question: is this dip an opportunity to buy?
Currently trading below both $2,450 and the 100-hourly Simple Moving Average, Ethereum started a downside correction from the $2,520 zone. A key bullish trend line with support at $2,450 was broken, further indicating a potential decline.
However, the bulls are defending the 50% Fib retracement level between the $2,311 swing low and the $2,519 high. On the upside, the $2,450 level presents resistance, and a clear break above it could push the price towards the $2,500 resistance. A successful breach of this level may pave the way for more gains, with Ether potentially rising towards the $2,580 or even $2,650 levels.
Alternatively, if Ethereum fails to surpass the $2,450 resistance, it could experience another decline. Initial support is anticipated near the $2,420 level, followed by a more significant support zone around $2,400. If the price continues to fall, it may reach $2,320 and potentially the $2,250 support level. The next crucial support level is located at $2,120.
In terms of technical indicators, the MACD for ETH/USD is currently showing a loss of momentum within the bullish zone, while the RSI has dropped below the 50 zone.
Considering these factors, traders and investors will need to closely monitor the price action and key support and resistance levels to determine whether this dip in Ethereum presents a buying opportunity or if further losses are expected.