Ethereum Price Struggles Amid Increased Selling Pressure

Ethereum’s Recovery Efforts Stalled

Ethereum (ETH) has recently faced challenges in its attempt to recover from a notable decline in value. Following a dip, the cryptocurrency struggled to find stability above the $2,500 mark, as persistent selling pressure continues to influence market dynamics.

Resistance and Support Levels Assessment

Following support around $2,440, Ethereum made a brief attempt to rebound, mirroring patterns observed in Bitcoin’s recent price movements. It managed to breach several resistance levels, including $2,500 and $2,550, even briefly surpassing $2,620. However, the recovery met resistance near the $2,660 zone, where sellers regained control.

Positions held firm at the 50% Fibonacci retracement level, which corresponds to the recent price drop from $2,880 to $2,440. As of now, ETH has retreated below $2,600, trading under the 100-hour simple moving average. An emerging bullish trend line indicates support at approximately $2,525 on the hourly ETH/USD chart.

Key Resistance and Support Levels Explored

On the upward trajectory, Ethereum may encounter resistance around $2,620, with following resistances at $2,640 and the crucial $2,660 level. A successful break above this resistance could propel Ethereum toward the $2,720 level. Continued bullish movement beyond this point may open doors for gains reaching $2,800 or even $2,880 in the short term.

Risks of Further Price Declines

Should Ethereum fail to surpass the $2,660 resistance, a potential decline could ensue. Initial support is positioned around $2,540, with a major support zone at $2,525, in conjunction with the trend line. If the price falls below $2,525, it may test the $2,500 support, and any further declines could lead to a drop toward support at $2,440, with $2,350 as the next significant level to watch.

Technical Analysis and Indicators

The hourly Moving Average Convergence Divergence (MACD) for ETH/USD indicates a growing momentum within the bearish range. Additionally, the hourly Relative Strength Index (RSI) is currently below the 50 threshold, reflecting heightened bearish momentum in the market.

Conclusion: Ethereum at a Crossroads

With numerous challenges ahead, Ethereum finds itself in a pivotal situation. The crucial question is whether current support levels can withstand the selling pressure. Time will reveal whether the market will stabilize or if further declines will occur.

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