Ethereum Drops 3% After Failing to Break $2,660 Resistance

Ethereum's price has shown signs of weakness after attempting a fresh increase above $2,600. The cryptocurrency is now trimming its gains and faces challenges in maintaining its position above the $2,500 support level. Ethereum started a fresh decline below the $2,600 level, with the price trading below $2,575 and the 100-hourly Simple Moving Average. There is a bullish trend line forming with support at $2,525 on the hourly chart of ETH/USD. If Ethereum can stay above the $2,500 zone in the near term, it could start a fresh increase.

Ethereum price found support near $2,440 and started a recovery wave. The price recovered above the $2,500 and $2,550 resistance levels, even spiking above the $2,620 resistance. However, bears remained active near the $2,660 resistance zone, defending the 50% Fib retracement level of the downward move from the $2,880 swing high to the $2,440 low. The price is now moving lower below $2,600, trading below $2,575 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance near the $2,620 level, with the next key resistance near the $2,640 level. The first major resistance is near the $2,660 level.

A clear move above the $2,660 resistance might send the price toward the $2,720 resistance. An upside break above the $2,720 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,800 resistance zone or even $2,880 in the near term. However, if Ethereum fails to clear the $2,660 resistance, it could start a fresh decline. Initial support on the downside is near the $2,540 level, with the first major support sitting near the $2,525 zone and the trend line. A clear move below the $2,525 support might push the price toward the $2,500 support. Any more losses might send the price toward the $2,440 support level in the near term, with the next key support sitting at $2,350.

Technical indicators suggest that the MACD for ETH/USD is gaining momentum in the bearish zone, while the RSI for ETH/USD is now below the 50 zone. The major support level is at $2,500, with the major resistance level at $2,660. The current price action indicates that Ethereum is facing significant resistance at higher levels, while support levels are being tested. The overall sentiment remains bearish, with bears looming as Ethereum struggles to maintain its position above key support levels.