After the recent bullish trend, Ethereum (ETH) has continued to trade above the $2,400 psychological level and the 100-hourly Simple Moving Average (SMA). The cryptocurrency started a significant upward move, clearing the $2,320 and $2,350 resistance levels, confirming high bullish strength. ETH price is climbing above the current high in ETH’s recent uptrend, aggressively moving past $2,450. This creates the possibility of a greater challenge to higher levels of resistance.
Resistance and Support Levels
If ETH starts a fresh decline, immediate support could be near the $2,550 level. The next key support is now forming at the $2,520 level. A strong breakout of the $2,600 barrier could incite additional increases in the following trading days.
Foundational support is found just under the $2,400 mark, with a larger area of support hovering near the $2,320 mark. If Ethereum were to drop further, the first key support should be found around $2,150.
Potential Scenarios
An upside break above the $2,550 resistance might spark a run towards the $2,600 resistance zone. If bulls don’t get past the $2,520 resistance soon, a downward correction may re-assert itself.
Specifically, if Ethereum is unable to hold its current bullish momentum, it could fall below the $2,320 level of support. If the decline continues, it may take it down towards the $2,250 support level. This development may mark a loss of strength in the ongoing bullish trend and a turn in the market’s sentiment.
Recent Price Movement
Even with the overall positive trend, Ethereum was down to start the day Friday, dropping close to 1% in early trading. Yet, this modest retreat from the peak serves to highlight the natural volatility that defines the cryptocurrency world. As always, investors and traders alike should be cautious and watch movements in price carefully.
