Ethereum, Resistance Breakout Fails...Warning Signs of Further Decline

▲ Ethereum (ETH)

Ethereum (ETH) is facing downward pressure after failing to break through the $2,425 resistance level, with increasing warnings about the possibility of further declines.

According to virtual asset specialized media NewsBTC on April 24 (local time), Ethereum recently began a correction from the $2,425 range and is trading below $2,365 and the 100-hour simple moving average. In particular, as the ascending trend line, which acted as a support level at $2,340, has broken down on the hourly chart, market uncertainty is amplifying.

Technical indicator analysis shows that Ethereum is currently defending its price above $2,285, attempting to recover from its decline. The primary resistance is around $2,355, and to overcome this, it needs to break through the strong ceilings at $2,385 and $2,425. If $2,425 is successfully breached, there is a possibility for a short-term upward trajectory towards $2,450 and then $2,550.

Conversely, if Ethereum fails to overcome the $2,385 resistance, there is a risk of a new downtrend beginning. Key support levels are formed in the $2,285 and $2,255 ranges, and analysis suggests that if $2,255 collapses, it could retreat past $2,200 to the $2,120 level. Currently, the Moving Average Convergence Divergence (MACD) is gaining momentum in the bearish zone, and the Relative Strength Index (RSI) has also fallen below 50, indicating a dominant selling trend.

Market analyst Aayush Jindal noted that Ethereum is showing weakness compared to Bitcoin. Jindal diagnosed that Ethereum would only have a chance to rebound if it stably maintains price levels above $2,255. Investors are maintaining a cautious approach, closely monitoring changes in technical indicators and the maintenance of key support levels.

Ethereum continues its struggle to reclaim the psychological resistance level of $2,400. Amid macroeconomic uncertainties and market supply-demand imbalances, global investors are keenly watching whether Ethereum can halt its downward trend and secure new upward momentum.

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