April 25, 2024

Ethereum Bearish Traders Shoot Higher Following the Latest Break Under $2,500

The asset’s price started on a path of major slide following its failure to go past $2,700. Ethereum now trades below $2,550 and the set 100-period daily moving average.

There is now a significant bearish trendline forming out with a resistance close to $2,490 on the ETH/USD chart.

The Price of Ethereum Gets a Blow

It was a very tough battle for Ethereum as it fought hard to go above the $2,7000 resistance point. The token hit close to the $2,700 mark and then began a new decline afterward. It subsequently had a steep fall which got it under the $2,620 and $2,550 benchmarks.

As a matter of fact, bearish traders joined forces to push the asset’s price further under $2,500 as well as the 100-period simple moving average. Now, a low point has been created at close to $2,422 and the asset’s price is currently consolidating its losses.

It should be noted that there is equally a major bearish trendline coming together to create resistance at $2,490 on the ETH/USD hourly chart. The present trendline is close to the 23.6% Fibonacci retracement area of the latest fall from the $2,703 oscillation height to the $2,422 low level.

The first critical point of resistance is close to the $2,565 area. It is equally close to the 50% Fibonacci retracement area of the latest fall from the $2,703 oscillation height to the $2,422 low level. The major area of breakout is now close to the $2,650 area and the 100-period simple moving average.

Any further close over the $2,650 area has the potential of opening the path to a good increase. In the case that was mentioned, the price of Ethereum might just happen to rise in the direction of the $2,700 resistance area in the very near future.

Could there be More Losses for Ethereum?

If it so happens that Ethereum is not able to gain sufficient pace beyond the $2,565 resistance area, then there is a high possibility that it keeps moving downward. The first support line below that is almost at the $2,420 area.

The other major support line after that is close to the $2,400 area. If it then happens that there is another snap downward under $2,400 and the latest low point, then the price of Ethereum might just be accelerating to unprecedented low points. In that instance, it might descend as low as under $2,350 to start with.

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