Ethereum Faces Uphill Battle Amid Bitcoin Surge – Potential Bearish Signals Detected

Ethereum Faces Uphill Battle Amid Bitcoin Surge – Potential Bearish Signals Detected

Ethereum’s struggle to breach the $2,250 resistance continues, contrasting with Bitcoin’s surge past $43,500. As ETH grapples with concerning signs, a major downturn could be on the horizon.

Ethereum’s Uphill Challenge:
The Ethereum price is encountering hurdles in its attempt to surpass the critical $2,250 resistance zone. Currently trading below $2,220 and the 100-hourly Simple Moving Average, ETH faces a challenging climb.

Technical Analysis:
1. Ethereum’s price is struggling to gain momentum above $2,250.
2. It remains below $2,220 and the 100-hourly Simple Moving Average.
3. A key bullish trend line, providing support near $2,170, is forming on the hourly ETH/USD chart (data feed via Kraken).
4. The potential for a substantial decline looms if Ethereum remains below $2,250 for an extended period.

Bitcoin’s Impact:
Bitcoin’s recent surge above the $43,500 mark poses a potential warning for Ethereum bulls. While Bitcoin gains momentum, Ethereum faces challenges in establishing a foothold above key resistance levels.

Recent Attempts and Rejections:
Despite multiple attempts, Ethereum has failed to settle above the crucial $2,250 resistance. Rejections at $2,250 and $2,265 levels indicate a formidable barrier for ETH bulls.

Current Ethereum Status:
As of the latest data, Ethereum’s price is consolidating above the recent low of $2,155. It hovers above the 23.6% Fibonacci retracement level of the decline from the $2,265 swing high to the $2,155 low.

Key Levels to Watch:
1. Ethereum faces resistance near $2,210, close to the 50% Fibonacci retracement level.
2. The crucial $2,250 level or $2,265 poses a significant hurdle.
3. A clear breakthrough above $2,265 could propel ETH towards the $2,320 level.
4. Further gains may lead to a push towards $2,365, with the potential for a rally testing the $2,500 zone.

Potential for Further Losses:
Should Ethereum fail to breach the $2,250 resistance, a downward trend could ensue. Initial support is near $2,170, aligned with the forming bullish trend line.

Critical Support and Bearish Scenarios:
1. The $2,120 zone stands as the first key support.
2. A breakdown and close below $2,120 might trigger strong bearish movements.
3. In such a scenario, Ethereum could revisit the $2,000 support, with further losses potentially leading to the $1,880 level in subsequent sessions.

Technical Indicators:
1. Hourly MACD indicates waning bullish momentum for ETH/USD.
2. Hourly RSI is now below the 50 level, suggesting a shift in momentum.

Disclaimer:
This article is for educational purposes only and does not represent NewsBTC’s opinion on investment decisions. All investments carry risks, and readers are advised to conduct their research before making any decisions, using the information provided at their own risk.