Ethereum Price Slips Again: Can Bulls Protect the Trend or Will Bears Take Over?
2024-10-22
Ethereum, the second-largest cryptocurrency by market capitalization, has experienced another price dip, raising concerns about its bullish trend.
After struggling to break through the key resistance level of $2,750, Ethereum (ETH) has entered a downside correction. This has left investors wondering whether the bulls will step in to defend the current trend or if the bears are gaining momentum.
Key Takeaways
Ethereum faces bearish pressure after failing to break the $2,750 resistance, leading to a downside correction below $2,680 and $2,650.
Critical resistance levels to watch are $2,650, $2,680, and $2,700. A break above these could lead to a renewed uptrend toward $2,780.
Failure to hold $2,600 support could result in further downside, with the next major targets being $2,550 and $2,500.
Market volatility offers opportunities for both bullish and bearish traders, depending on key breakouts and support levels.
Short-term recovery is possible if bulls can reclaim $2,680, but failure to do so may signal extended bearish momentum.
Ethereum Price Dips: What Happened?
Recently, Ethereum's price attempted to rise above the $2,750 resistance but failed to maintain that upward momentum. Instead, ETH faced a correction that brought it below the crucial $2,680 support level, signaling a potential trend reversal.
According to data from Kraken, the price saw a break below a key bullish trend line with support near $2,680. The pair continued to decline below $2,650, breaking through the 100-hourly Simple Moving Average (SMA), indicating the potential for further bearish movement.
Bulls vs. Bears: The Battle for $2,650 and $2,680 Resistance
Ethereum now finds itself in a critical consolidation phase, trading below $2,650. Despite the recent dip, the price is attempting to recover and climb back above the $2,650 and $2,680 resistance levels.
A successful break above these key levels could renew bullish momentum and signal the possibility of a new price surge.
However, the $2,700 resistance stands as the first significant hurdle for ETH. If the price manages to break above this level, it could trigger further gains, potentially driving Ethereum toward the $2,725 and $2,780 resistance zones.
Overcoming these hurdles would set the stage for a more sustained bullish trend, with a target range of $2,840 to $2,880.
Source: TradingView
Ethereum Price Trims Gains: Bears Holding Strong?
Despite these potential upsides, the bearish pressure has remained strong, particularly near the $2,765 level, where Ethereum saw a high before starting its downward correction. The price has since dropped to a low of $2,626 and is consolidating near the 23.6% Fibonacci retracement level of the downward move from the $2,757 swing high to the $2,626 low.
On the upside, immediate resistance sits near $2,665, followed by more robust resistance at $2,700. Failing to break above these levels could result in Ethereum facing more downside risks.
What’s Next: Will Bears Gain Control?
If Ethereum fails to clear the $2,680 resistance, the likelihood of further declines increases. The first level of support on the downside sits at $2,625, followed by $2,600. A clear break below $2,600 could send Ethereum's price tumbling toward $2,550 or even lower, with the next major support at $2,500.
In a worst-case scenario, ETH could drop as low as $2,440, which would represent a significant shift in market sentiment, leading to a prolonged bearish trend.
Read more about Ethereum (ETH):
ETH to USD: Convert Ethereum to US Dollar
Ethereum (ETH), Market Cap, Price Today & Chart History
How to Trade Ethereum in This Environment
For traders and investors, the current Ethereum market is highly volatile, and both bulls and bears have opportunities to capitalize on price movements.
If you're bullish on Ethereum, you’ll want to watch for a break above the $2,680 and $2,700 levels, which could lead to further gains toward $2,780 and beyond.
On the other hand, if you believe that the bears will prevail, keep an eye on the $2,600 support level. A break below this could signal further downside toward $2,500 and even $2,440.
Conclusion
The Ethereum price dip below $2,680 has cast doubt on the sustainability of its bullish trend, with both bulls and bears fighting for control.
If bulls can break through the $2,650 and $2,680 resistance levels, ETH could see a renewed uptrend, with potential gains toward $2,780. However, if the $2,600 support fails to hold, Ethereum could face further downside pressure, with a target of $2,500 or lower.
FAQ
Q: Why did Ethereum’s price dip below $2,680?
A: Ethereum faced a downside correction after failing to break the $2,750 resistance level, resulting in a dip below $2,680 and $2,650.
Q: What are the key resistance levels for Ethereum?
A: The primary resistance levels are $2,650, $2,680, and $2,700. A break above these could lead to a new uptrend.
Q: What happens if Ethereum fails to hold $2,600?
A: If ETH breaks below $2,600, it could decline further, potentially targeting $2,550, $2,500, or even $2,440.
Q: Is it a good time to buy Ethereum?
A: The decision to buy depends on your analysis of the market. If you believe Ethereum will recover and break above $2,700, it may be a good time to enter the market. However, if you expect further downside, it may be wise to wait.
Q: What could push Ethereum back up?
A: A clear break above the $2,700 resistance level could renew bullish momentum, leading to a rise toward $2,725 and $2,780.
Disclaimer: The content of this article does not constitute financial or investment advice.
