Ethereum price is currently facing a crucial test as it hovers near the $2,850 level. The question is whether this support level will be able to withstand the pressure or if the price will continue to decline.
At the moment, Ethereum is struggling to recover above the $3,100 resistance zone and is trading below both $3,100 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance at $3,070 on the hourly chart of ETH/USD.
In terms of recent price movements, Ethereum attempted a recovery wave but was unable to break through the $3,100 resistance. As a result, it experienced another decline, briefly dipping below the $2,900 support level. The price managed to find support at $2,867 and is currently recovering some of its losses.
Immediate resistance for Ethereum is near the $3,020 level, followed by the $3,070 level and the 100-hourly Simple Moving Average. If the price manages to break above these levels, it could potentially rise towards the $3,200 level.
On the other hand, if Ethereum fails to clear the $3,100 resistance, it could face further declines. The first major support on the downside is near $2,920, followed by the $2,850 zone. A clear move below $2,850 could lead to a drop towards $2,620, and potentially even the $2,550 level.
As for technical indicators, the MACD for ETH/USD is currently gaining momentum in the bearish zone, while the RSI is below the 50 level.
In summary, Ethereum is at a critical juncture as it tests the $2,850 support level. The outcome of this test will determine the next major price movement for Ethereum, with a break above $3,100 potentially leading to further gains, and a break below $2,850 potentially signaling more losses in the near term. As always, investors are advised to conduct their own research before making any investment decisions.