Ethereum’s price has hit a roadblock at the 100-hourly Simple Moving Average (SMA), indicating potential struggles in the near term. The cryptocurrency failed to surpass the $2,300 resistance level and is currently displaying bearish signs, suggesting a possible revisit of the $2,080 support level.
One of the key reasons behind the struggle to break above the resistance is the presence of a major bearish trend line near $2,280 on the hourly chart of ETH/USD. Additionally, Ethereum is trading below $2,300 and the 100-hourly SMA, which further contributes to the bearish sentiment.
Although the price is still above the 23.6% Fib retracement level of the upward move from the $1,860 swing low to the $2,289 high, it is facing resistance around $2,280 and the trend line. The first significant resistance level lies at $2,300, and a successful close above this level could trigger a decent upward movement. The subsequent notable resistance is at $2,400.
If the resistance at $2,300 remains unbroken, Ethereum might experience a fresh decline. The initial support level on the downside is around $2,185. In the event of a downside break, the $2,075 zone or the 50% Fib retracement level becomes a crucial support level. Further downward movement could lead to a test of the $2,000 support level, with potential additional losses pushing the price towards $1,860.
It is important to note that the information provided should not be considered as financial advice. It is solely for educational purposes, and individuals are advised to conduct their own research and assess the risks before making any investment decisions.