Ethereum’s price dropped below $2,800 and tested $2,620 before attempting a recovery. Currently trading around $2,840 near the 100-hour Simple Moving Average, ETH faces resistance at $2,890. A bearish trend line is forming with resistance at $2,960 on the hourly ETH/USD chart. If the price falls below $2,720, it could decline further.
After failing to hold above $3,000, Ethereum began a decline similar to Bitcoin, dropping below $2,880 and accelerating under $2,800 to a low of $2,621. It has since recovered slightly, surpassing the 23.6% Fibonacci retracement level from the recent high of $3,058 to the low of $2,621.
For further gains, ETH must overcome resistance at $2,890 and the 61.8% Fibonacci level, with additional hurdles at $2,920, $2,950, and the key $2,960 trend line. A break above $2,960 could push the price toward $3,020, potentially leading to $3,120 or $3,250.
If it fails to break $2,890, Ethereum might decline again, with initial support at $2,800 and major support at $2,720. A drop below $2,720 could lead to $2,650 or retest $2,620, with further support at $2,550 and $2,500.
Technical indicators show the hourly MACD is losing bearish momentum, while the RSI is above 50. Key support and resistance levels are $2,720 and $2,890, respectively.
Frequently Asked Questions
Of course Here is a list of FAQs about Ethereum approaching critical resistance levels designed to be clear and helpful for all levels of traders
Beginner Definition Questions
1 What is a critical resistance level in simple terms
Think of it as a price ceiling that Ethereum has had trouble breaking through in the past Its a level where a lot of people who bought at that price are looking to sell and break even which can stop the price from going higher
2 Why is it a big deal that Ethereum is approaching this level
Because what happens next could set the tone for the market If it breaks above it could signal a strong upward trend If it gets rejected and falls it could mean a drop or a period of consolidation
3 What does determine its next direction mean
It means the price action at this resistance level will give traders and investors a major clue about whether Ethereum is likely to go significantly higher or reverse and go lower in the short to medium term
Market Mechanics Analysis
4 How do traders identify these resistance levels
They look at historical price charts to find levels where the price has peaked and reversed multiple times They also use technical indicators like moving averages and volume profiles to confirm these areas
5 What typically happens when price hits a resistance level
Selling pressure usually increases Traders who are holding profits may sell and new traders might open short positions expecting the price to fall This creates a battle between buyers trying to push the price up and sellers trying to push it down
6 Whats the difference between breaking out and getting rejected
Breaking Out The price climbs and holds above the resistance level often on high trading volume This is a bullish signal
Getting Rejected The price touches the resistance level and then quickly falls back down This is a bearish signal
Strategy Practical Tips
7 What should I do if Im already holding Ethereum
Many holders would consider this a watch and wait moment You might set a stoploss order just below the resistance level to protect your profits if a rejection occurs If a breakout happens it could be a sign to hold for further gains
8 Is this a good time to buy Ethereum
Its