The recent rally in the price of Ethereum has hit a roadblock, with bears now in control of the market. The digital asset is currently correcting gains and is trading below the crucial $2,250 support zone. Ethereum is also below the 100-hourly Simple Moving Average, indicating a downside momentum.
There are two bearish trend lines that have formed with resistance levels near $2,230 and $2,260 on the hourly chart of ETH/USD. These trend lines are hindering any upward movement and are acting as key resistance levels for Ethereum. If the price fails to break above these trend lines, it is likely to experience further declines.
If the downward pressure continues, Ethereum could test the $2,050 support level. This level has acted as a significant support in the past and is expected to hold firm. However, if the bears manage to break below this level, it could spark additional selling pressure, leading to a potential drop towards the $2,000 psychological level.
On the upside, if Ethereum manages to break above the resistance levels at $2,230 and $2,260, it could pave the way for a bullish rally. The next major resistance level to watch is $2,350, followed by $2,420. A clear move above these levels would signal a potential bullish trend reversal, with the price aiming to test the $2,500 zone.
Analyzing the technical indicators, the MACD for ETH/USD is currently in the bearish zone and losing momentum. The RSI (Relative Strength Index) is below the 50 level, indicating a bearish sentiment among traders. These indicators suggest that the bears are in control of the market at the moment.
It is important to note that this article is for educational purposes only and does not represent the opinions of NewsBTC. Investing in cryptocurrencies carries risks and readers are advised to conduct their own research before making any investment decisions. The information provided in this article should be used at your own risk.
While Ethereum is currently facing a correction in its price, the bulls are expected to defend the $2,050 support level. Traders should closely monitor the resistance levels at $2,230 and $2,260, as a break above these levels could signal a bullish trend reversal. However, caution is advised, as the overall market sentiment remains bearish.
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