The cryptocurrency market experienced a downturn, significantly impacting altcoins and causing a 3% drop in Ethereum‘s value. Ethereum (ETH) is navigating a volatile path, grappling with potential recovery waves while testing crucial support levels.
Ethereum’s price recently faced challenges as it increased losses, reaching the $2,300 support threshold. However, ETH is attempting to initiate a recovery wave above the $2,340 level, considering a potential test at $2,390.
At this stage, Ethereum surpassed the $2,420 and $2,400 levels, initiating a downward spiral. The price is currently below $2,400 and the critical 100-hour Simple Moving Average. A notable break above a connected declining trend line, with resistance around $2,340, became a significant focal point for a potential rebound.
Ethereum’s recovery efforts include overcoming barriers at $2,390 and $2,400. A breakthrough beyond these levels could pave the way for a significant uptrend. The immediate challenges are the 50% Fib retracement level at $2,390 and the main resistance at $2,400. Surpassing these barriers could propel ETH towards a positive trajectory, potentially reaching $2,480.
If Ethereum encounters obstacles at the $2,390 resistance, a potential decline could emerge. The first support is at $2,320, followed by a critical level at $2,300. A breach below $2,300 could trigger further downward movement, testing the $2,250 support and possibly approaching $2,200. The hourly MACD for ETH/USD indicates a decreasing momentum in the bearish zone, suggesting cautious market sentiment, while the hourly RSI is below 50, emphasizing caution in assessing potential market shifts. Key levels to watch are $2,300 for support and $2,390 for resistance.