Why is $2,650 Vital for Ethereum’s New Rally? – Technical Analysis

  • Ethereum sees its price struggling to overcome the $2.6K and $2,625 hurdles.
  • The price now hovers under $2.6K and 100hr SMA.
  • ETH/USD hourly chart shows a bearish line emerging with the resistance of around $3,580.
  • The leading altcoin might endure new drops if it flops to overcome $2,625.

ETH extended its downswings beneath the support zone of $2,525. The alt maintained beyond the $2,500 floor and attempted upward break at the moment.

ETH Price Encounters Obstacles

Ethereum launched new plummets from well beyond $2,625. The alt plunged under US$2,550 and then US$2,525 supports before dipping into the red territory.

Moreover, Ethereum fell beneath $2.5K and settled under the 100hr Simple Moving Average. The bearish wave had ETH exploring the $2,486 lows before a sharp recovery that saw it climbing beyond the resistance of US$2,525 and US$2,550.

Ethereum bulls propelled the price beyond the 50% Fibonacci retracement zone of the latest drop from $2,634 to the swing low of $2,486. For now, Ethereum faces resistance around the $2,580 mark.

Furthermore, the 1hr chart shows a vital bearish line emerging with $2,580 resistance. This trend-line sits near the 61.8% Fibonacci retracement area of the latest drop from $2,624 to $2,486.

ETH will meet the first crucial resistance level around the $2,625 area. Overcoming this obstacle will take the alt towards the resistance of $2,650. A close past this resistance might translate to steady upsurges for Ethereum. In such a case, the price might climb towards $2,750.

Further Drop in Ethereum?

Ethereum’s failure to kick-start a new upsurge past $2,625 might welcome declines for the leading altcoin. Downward actions will see ETH hitting the support zone around $2,550. The following massive support locates at $2.5K. A close under this foothold might push ETH lows under $2,480.

Losing grounds here will see ETH exploring the $2,420 support. Bulls can resurge at this value area to prevent further downswings. However, more weakness across the financial space will see Ethereum plunging to $2,350.

Meanwhile, geopolitical developments from the Russian-Ukraine war remain vital in defining upcoming crypto price reactions.

ETH Technical Indicators

Crucial support area: $2,500

Crucial resistance area: $2,650

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