Ethereum (ETH) has shown its ability to rebound after declines, but now faces a technical crossroads that could define its short-term direction. After bouncing from a recent low of $2,470, ETH managed to surpass the $2,500 mark and flirt with $2,540. However, the key challenge lies in its struggle against a decisive resistance in the $2,650 to $2,660 range.
📈 What's happening with the price of Ethereum?
In recent hours, Ethereum outperformed Bitcoin in relative performance, recovering from the lows of $2,470. This rebound broke the 50% Fibonacci retracement level of the downward move ($2,788 to $2,470). But after touching $2,660, the bears have halted the advance and ETH has retraced below $2,600.
Technically, the hourly ETH/USD chart shows a bearish breakout below a short-term ascending channel, with previous support at $2,580. At this moment, the pair maintains a key support at $2,545, while the 100-hour simple moving average is just below $2,550.
🛑 Keys to support and resistance
Main support: $2,545
Additional support: $2,500 and $2,470
Immediate resistance: $2,620
Key resistance: $2,660
Extension resistance: $2,720
If Ethereum manages to strongly break the $2,660 barrier, the price could quickly move towards $2,720 and subsequently to levels close to $2,780 or even $2,880 in upcoming sessions. Conversely, a decisive drop below $2,545 and especially below $2,500 could trigger deeper sales towards $2,470 and even down to $2,420.
📊 Technical indicators in play
MACD (1H): It is turning negative, indicating bearish pressure.
RSI (1H): Approaching 50, suggesting indecision in the market.
💡 Mini investment method
Given the high volatility, traders might apply a staggered approach:
1. Initial purchase in the support zone ($2,545–$2,500) with a small position size (10-20% of what you plan to invest).
2. Add positions only if a bullish breakout above $2,660 is confirmed, targeting $2,720 as the first objective.
3. Suggested Stop-Loss: Below $2,470 to limit losses.
❓ The big question: Will this be the base for a new bullish rally for Ethereum or just a pause before another drop?
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