Ethereum’s price is facing challenges in sustaining its recent gains. The cryptocurrency failed to break the $2,750 resistance level and is now consolidating around $2,635. It is currently trading below the 100-hourly Simple Moving Average and could be at risk of further downward movement.
A key contracting triangle was broken with support at $2,695 on the hourly chart, indicating bearish pressure. Although Ethereum initially saw an increase from the $2,650 support zone and surpassed the $2,720 resistance level, it faced selling activity near the $2,750 zone.
As the price corrected its gains, it dropped below $2,700 and the 100-hourly Simple Moving Average. A consolidation is now taking place around $2,635. If there is another upward move, the price may encounter resistance near the $2,700 level, which is close to the 50% Fib retracement level.
To resume the uptrend, Ether needs to break the first major resistance at $2,735, followed by the $2,765 level. A further breakthrough could lead to an increase towards $2,800 and the subsequent resistance zone around $2,880.
In the event that Ethereum fails to surpass the $2,700 resistance, it might continue its downward movement. Initial support lies around $2,635, with the first major support near the $2,600 zone. Further losses could push the price towards $2,550, followed by the $2,520 support level. The next significant support is at $2,440.
Currently, the hourly MACD for ETH/USD indicates a loss of bullish momentum, while the hourly RSI has dropped below the 50 zone.
In summary, Ethereum’s price struggles to maintain its upward momentum, with the $2,700 resistance level acting as a hurdle. If the price fails to break through, it could result in further losses, with key support levels at $2,635 and $2,600.