"If $2,400 is breached, it will explode"...Ethereum pushed to the brink of major volatility

▲ Ethereum (ETH)

Ethereum (ETH) is attempting to break through the $2,400 resistance level, continuing its upward trend after holding key support lines.

NewsBTC reported on May 5 (local time) that Ethereum, after maintaining stable momentum above $2,355, has entered a zone that will determine its short-term direction regarding a potential break above $2,400. Ethereum rebounded similarly to Bitcoin (BTC) after defending the $2,320 support level, subsequently surpassing the $2,340 and $2,350 ranges.

During its ascent, Ethereum formed a high at $2,398 before pausing. Although it temporarily dipped below the Fibonacci 23.6% retracement level of the rise from the $2,220 low to the $2,398 high, it maintained its position above the 100-hour simple moving average. On the hourly chart, an upward trendline support was formed near $2,350.

Technically, the key resistance level is $2,400. If buying pressure is sustained above $2,350, Ethereum could retest the $2,380 range and then attempt to break through $2,400. The next major resistance is $2,420, and a clear break above this level could open the door for a rise to $2,500.

If the bullish momentum strengthens further, the short-term target range is set between $2,550 and $2,565. The hourly Moving Average Convergence Divergence (MACD) indicator is gaining strength in the bullish zone, and the Relative Strength Index (RSI) is also above the 50-line, indicating a buyer-dominant trend.

Conversely, if Ethereum fails to overcome the $2,400 resistance, a correction could resume. Immediate support levels are $2,350 and the upward trendline, with the primary major support at $2,330. If this level is breached, $2,310 and the Fibonacci 50% retracement level could act as the next lines of defense.

Should further declines occur, it could fall to the $2,285 range, with the key support level identified at $2,250. The market is currently expected to determine Ethereum's next direction based on whether it breaks $2,400 and maintains support at $2,350.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*