Ethereum has lost the $2,550 resistance level, potentially signaling a decrease in prices in the coming weeks.
Loss of $2,550 Resistance
Ethereum reacted bearishly at the critical resistance zone around $2,550. This level was briefly reclaimed but has since closed below, suggesting a possible bull trap formation.
Technical Aspects
The rejection from $2,550 is also supported by several technical indicators, including the 0.618 Fibonacci level and dynamic resistance. These confluences strengthen the significance of the resistance zone and highlight the implications of the failed breakout.
Market Expectations
Ethereum faces increased downside risk unless it reclaims $2,550. The next critical support level is at $2,226, which may provide liquidity and a potential reversal zone.
Recent developments in the Ethereum market indicate a likely continuation of the bearish trend. Traders' strategies may focus on monitoring the support level at $2,226.
