Ethereum’s price recently faced a downward correction, breaking below the $2,550 support level. The cryptocurrency is currently trading below this level and the 100-hourly Simple Moving Average. A bearish trend line has formed with resistance at $2,560 on the hourly chart of ETH/USD.
However, Ethereum is now in a recovery phase, with the price showing signs of upward movement. It has surpassed the $2,500 level and is trading above the 23.6% Fib retracement level of the previous downward move.
Yet, there are still hurdles to overcome. The price is facing resistance near the $2,550 level, with the first major resistance at $2,600. If Ethereum manages to break above this resistance, it could rally towards the $2,650 and $2,700 levels. The next significant hurdle sits near $2,720 or $2,750.
On the other hand, if Ethereum fails to break the $2,550 resistance, it could resume its decline. The initial support lies at $2,520, followed by the major support at $2,500. Further downward movement could lead the price towards $2,450 and potentially the $2,420 support level.
The technical indicators suggest bullish momentum, as the MACD is gaining strength in the bullish zone, and the RSI is approaching the 50 zone.
In summary, Ethereum’s price is recovering from recent losses but still faces key obstacles near the $2,550 level. A decisive breakthrough could lead to further gains, while a failure to break the resistance may result in another decline.