Ethereum price is at a critical technical juncture near the $2,550 region as the digital currency continues its ongoing recovery efforts. This resistance level has already turned away ETH once, making it unclear whether the buyers will manage to move the price higher or another pullback is coming soon.
At the time of writing, Ethereum is trading at $2,491.78, down 0.66% over the last 24 hours. The cryptocurrency has recorded a 24-hour trading volume of around $18.24 billion, while its market capitalization stands near $299.89 billion.
The latest price movement has placed Ethereum close to a major technical area that could determine its next direction.
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Ethereum Price Rejected at $2,550 Resistance
On August 28, crypto analyst Ted highlighted the $2,550 resistance area since Ethereum did not manage to overcome this level.
This area is crucial since the price action above this level can provide the necessary strength for further moves to more significant levels. As per Ted, the breakout above the $2,550 resistance level can allow the move towards the $3,000 level.
Nevertheless, the Ethereum price still has to show that it is capable of changing its resistance to a new support level. An upswing above the level alone is not enough to say that a breakout has occurred without being able to sustain above that level.
Should ETH continue getting rejected at $2,550, then more bearish pressure could ensue. It would mean that the crypto could head lower towards the $2,000-$2,100 area once again.
Ethereum Technical Setup Remains Positive
Ethereum is trading above the $2,164.70 level on the Bollinger Bands’ middle line. Upper Band is seen at $2,729.48, while the Lower Band is placed at $1,599.92. Currently, price is trading in the upper half of the Bands, indicating high buying pressure in the market. A further price increase could attract the $2,729.48 Upper Band to action.
MACD Line currently sits at 169.01, which is higher than the Signal Line’s level of 134.64. Therefore, the bullish trend is still in place for now. Besides, the histogram is positive at 34.37, reflecting positive buying momentum in the market.
What Could Happen Next
The future direction for Ethereum depends on how price will act at $2,550.
Price must first break out from there and maintain itself above the level in order to set up for a bullish continuation towards $2,729 as the next major price level, with $3,000 being the next level of interest.
On the other hand, should Ethereum be rejected at $2,550 again, then $2,164 becomes the key level to watch out for. Should price break below this level, a move down to the $2,000-$2,100 area becomes likely.
At the moment, however, the technicals look favorable, but Ethereum price still needs to take out its current resistance level.
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