Summary
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Ethereum has found support at $2,320 and initiated a recovery, now trading above $2,540 and the 100-hourly SMA, having broken a bearish trend line and key Fibonacci levels, signaling bullish momentum.
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The immediate major hurdle for Ethereum is the $2,650 resistance zone; successfully clearing this level is critical for further gains.
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A decisive break above $2,650 could send ETH towards $2,720, with subsequent potential targets at $2,780 and possibly $2,840 in the near term.
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However, if Ethereum fails to overcome the $2,650 resistance, it risks a new decline, with initial support near $2,520, followed by major support around $2,450 and potentially $2,320.
Ethereum’s valuation has initiated a renewed upward trajectory after establishing a support base at the $2,320 level.
The cryptocurrency is currently exhibiting positive momentum and appears poised to challenge the significant resistance zone near $2,650.
Ethereum’s Price Recovery Gains Momentum
Contrasting with Bitcoin’s recent price action, Ethereum experienced a corrective dip below the $2,450 mark.
Its value briefly descended below the $2,400 and $2,350 support areas.
Buyer interest remained robust around the $2,300 level, preventing further declines.
A price low was recorded at $2,308, from which a fresh upward rally began.
This resurgence saw Ethereum climb past both the $2,450 and $2,500 price points.
The asset successfully reclaimed the 61.8% Fibonacci retracement level, calculated from the downward swing originating at a $2,583 high to the $2,308 low.
Furthermore, the aforementioned break above the bearish trend line at $2,530 was a key bullish indicator.
Ethereum is now consolidating its position above $2,540 and the 100-hourly SMA.
It has also surpassed the 76.4% Fibonacci retracement level derived from the same $2,583 peak to the $2,308 trough.
On the path to further gains, Ethereum might encounter initial resistance near $2,580.
The subsequent significant obstacle is anticipated around the $2,600 level, with the primary major resistance identified at $2,650.
A clear and sustained break above $2,650 could pave the way for a price ascent towards the $2,720 resistance.
Should an upward breach beyond $2,720 materialize, it could signal more substantial gains in the upcoming trading sessions.
In such a scenario, Ether’s value could potentially rise towards the $2,780 resistance area, or even target $2,840 in the short term.
Potential for Renewed Price Decline
If Ethereum encounters difficulty in surmounting the $2,650 resistance, a fresh downward movement could ensue.
The initial support level to watch for on the downside is located near $2,520.
The first major area of support is established around the $2,450 zone.
A decisive break below this $2,450 support might exert further downward pressure, potentially pushing the price towards the $2,420 support.
Beyond that, the next significant support benchmark is situated at $2,250.
Also Read: Resurgence of Ethereum Potential Shift in Crypto Dominance from Bitcoin
Sean Farrell, a Fundstrat analyst, believes Ethereum (ETH) is experiencing a significant resurgence after a period of neglect.t. The recent price strength appears to be more organic and rooted in market structure rather than specific hype. A potential cultural and strategic shift at the Ethereum Foundation toward L1 scalability, diminishing short interest, and returning institutional flows could further bolster ETH’s recovery and user experience. Farrell is monitoring the ETH/BTC 100-day moving average and suggests a near-term ETH price of $3,100 if Bitcoin remains flat, with higher targets if Bitcoin rallies. Ethereum’s recent performance aligns with a broader shift in crypto risk appetite, similar to trends observed in small-cap stocks, indicating that after a long period, ETH might now be leading market optimism. Experts describe the recent upward movement in ETH’s price as “pretty organic” and an “instance of price discovery.” The current positive momentum appears to be more deeply rooted in market structure and fundamental factors, especially capital flow dynamics…[Read More]
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