Ethereum 'Hesitates' at $2,360 Barrier... Is This the End of the Rebound?

▲ Ethereum (ETH)

Ethereum (ETH) has encountered strong selling pressure at the $2,360 resistance level, making the continuation of its rebound rally uncertain.

Crypto news outlet NewsBTC reported on April 21 (local time) that Ethereum's price, which began its recovery from the $2,250 support level, has failed to sustain its upward momentum and entered a stagnation phase. Ethereum recently attempted a rebound by breaking the $2,300 resistance but is struggling to overcome the thick selling wall formed around $2,360. The current price is trading below $2,340 and the 100-hour Simple Moving Average, leaving open the possibility of further declines.

Technical indicators suggest that downward pressure is gradually intensifying. Ethereum broke above the 23.6% Fibonacci retracement level of the decline from its high of $2,465 to its low of $2,253, but it was halted at the $2,360 resistance, where the 50% retracement level is located. The 4-hour 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 weakening of buying interest. If Ethereum fails to decisively conquer $2,360, the upward momentum is expected to dissipate quickly.

If Ethereum fails to break through the $2,360 resistance, there is a risk of a new downward wave. A short-term support level is formed at $2,290, and a break below it could quickly push the price down to major support levels at $2,250 and $2,200. If the downtrend intensifies, it is not difficult to rule out the possibility of a retreat to the next support zone at $2,150, and eventually to the final demand zone at $2,120. To keep the rebound alive, a breakout of the resistance level accompanied by trading volume is crucial.

On the other hand, if the bulls succeed in overcoming the $2,360 resistance, the market is expected to regain vitality. Surpassing the initial target price of $2,385 would open the way for an ascent to $2,420 and then to the previous high around $2,465. If strong buying pressure flows in, a short-term recapture of the $2,500 mark also comes into view. The positive movement of leading cryptocur, such as Bitcoin (BTC) aiming for the $76,500 level, creates a favorable environment for Ethereum's rebound.

Ethereum's future trajectory is expected to be determined by the outcome of the struggle around the $2,360 mark. The market is currently searching for direction and engaging in an intense waiting game, with indicators slightly leaning towards a downtrend. Investors should monitor bearish reversal signals from key indicators and respond cautiously after confirming any breakdown of support levels. Whether the psychological and technical "Maginot Line" of $2,360 can be defended is the key to determining the fate of this rebound rally.

*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.*