Key Takeaways:
Ethereum is struggling to climb above the $2,500 resistance zone.
ETH USD is still well below a key bearish trend line with resistance at $3,150 on the daily chart.
The price could struggle to clear the $2,820 and $3,000 resistance levels.
Ethereum (ETH) is consolidating below $3,000 and the 50-day simple moving average (blue). ETH might drop again if it stays below $2,820.
Ethereum Price Remains In Downtrend Below $3,000
In the last technical analysis, we discussed how Ethereum started a recovery wave from the $2,100 level. A low was formed at $2,099 and the price recently started a decent increase like Bitcoin. There was a move above the $2,350 and $2,450 resistance levels.
There was a clear move above the 23.6% Fib retracement level of the downward move from the $3,548 swing high to the $2,099 low. The bulls even pushed the price above the $2,720 level before the bears appeared.
Ethereum price daily chart | Source: ETH/USD on TradingView.com
Ethereum faced heavy resistance near the $2,750 level. It failed to even test the 50% Fib retracement level of the downward move from the $3,548 swing high to the $2,099 low.
The price is now consolidating near the $2,700 level. On the upside, the price could face hurdles near the $2,700 level. The first major resistance sits near the $2,820 level. The next resistance is near the $2,880 level.
A clear move above the $2,880 level could open the doors for a move toward the $3,000 level, the 50-day simple moving average (blue), and the trend line zone. If ETH bulls push the price above the $3,000 resistance, there could be a steady increase. In the stated case, the price could rise toward the $3,220 level. Any more gains might initiate a move toward the $3,500 zone in the near term.
Another Decline In ETH?
Immediate support is near the $2,440 level. The first major support sits near the $2,350 level. The next major support sits near the $2,220 pivot level. A daily close below the $2,220 level might send ETH toward the $2,100 support.
The main uptrend support is now near the $2,000 region (a multi-touch zone). A clear downside break and close below the $2,000 support zone could spark a major drop. The next major support is near the $1,880 level. Any more losses might send Ether toward the $1,750 support.
Overall, Ethereum price is consolidating below key hurdles at $2,820 and $3,000. A clear move above the $3,000 barrier might start a steady increase. Conversely, there could be a fresh drop to $2,200.
The post Ethereum Confronts Uphill Task: Is ETH Ready For The Challenge? appeared first on CoinChapter.
