Ethereum Price Faces Challenges in Maintaining Recent Gains: Is the Upward Momentum at Risk?

Ethereum’s price faced challenges in surpassing the $2,750 resistance level and is currently consolidating around $2,635, potentially exposing it to further downside risks.

The decline in Ethereum commenced from the $2,750 resistance mark, with the price now trading below both $2,700 and the 100-hourly Simple Moving Average. Notably, a significant development saw a breach of a crucial contracting triangle with support at $2,695 on the hourly ETH/USD chart sourced via Kraken. Should the pair dip below the $2,635 support zone, it could extend its losses.

Despite initially showing promise by initiating an upswing from the $2,650 support area, Ethereum managed to outperform Bitcoin by surpassing the $2,720 resistance zone. However, the bears intervened near the $2,750 threshold, leading to a recent peak at $2,763 before a corrective pullback occurred. The price retraced below $2,720 and $2,700 levels, along with the breach of the aforementioned contracting triangle support at $2,695 on the hourly ETH/USD chart.

Presently, Ethereum’s price hovers below $2,700 and the 100-hourly Simple Moving Average, with a recent low forming around $2,635. The cryptocurrency is currently in a consolidation phase, with potential obstacles around the $2,700 level if there is a resurgence. Close monitoring is advised as the price may encounter resistance near the 50% Fibonacci retracement level between the recent drop from the $2,763 peak to the $2,635 trough.

Key resistance levels to watch include $2,735 and $2,800, with a breakthrough above $2,800 possibly propelling the price towards the $2,880 resistance zone in the short term.

In the event Ethereum fails to breach the $2,700 resistance barrier, a continuation of the downward movement could be expected. Initial support is situated near $2,635, with a more substantial support zone near $2,600. A decisive drop below $2,600 might steer the price towards $2,550, potentially leading to further declines towards the $2,520 support level, with another critical support level at $2,440.

Analyzing the technical indicators, the hourly Moving Average Convergence Divergence (MACD) for ETH/USD indicates a waning bullish momentum, while the Relative Strength Index (RSI) has dipped below the 50 zone.

In conclusion, Ethereum’s price trajectory remains at a critical juncture, with key resistance levels to overcome and crucial support levels to monitor closely in the coming trading sessions.