Ethereum price extended losses and tested the $2,450 support zone. ETH is recovering losses and faces many hurdles near the $2,550 level.

• Ethereum started a downside correction below the $2,550 support.
• The price is trading below $2,550 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $2,560 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it clears the $2,550 and $2,600 resistance levels.

Ethereum Price Starts Recovery

Ethereum price extended its decline below the $2,600 level like Bitcoin. ETH traded below the $2,550 and $2,500 support levels to enter a short-term bearish zone.

The price traded as low as $2,445 and is currently correcting losses. There was a minor increase above the $2,500 level. The price traded above the 23.6% Fib retracement level of the downward move from the $2,758 swing high to the $2,445 low.

Ethereum price is now trading below $2,550 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,550 level. There is also a key bearish trend line forming with resistance at $2,560 on the hourly chart of ETH/USD.

The first major resistance is near the $2,600 level. It is close to the 50% Fib retracement level of the downward move from the $2,758 swing high to the $2,445 low.

A clear move above the $2,600 resistance might send the price toward the $2,650 resistance. An upside break above the $2,650 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,700 resistance zone in the near term. The next hurdle sits near the $2,720 level or $2,750.

Another Decline In ETH?

If Ethereum fails to clear the $2,550 resistance, it could start another decline. Initial support on the downside is near the $2,520 level. The first major support sits near the $2,500 zone.

A clear move below the $2,500 support might push the price toward $2,450. Any more losses might send the price toward the $2,450 support level in the near term. The next key support sits at $2,420.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now near the 50 zone.

Major Support Level – $2,450

Major Resistance Level – $2,550

At the sixteenth annual BRICS Summit in Kazan, Russia, several leading members discussed cryptocurrency’s role in de-dollarization. The Presidents of Russia, China, and Iran all stressed the need for new digital platforms.

The core of this de-dollarization effort is BRICS Pay, a payment solution platform based on blockchain technology and CBDCs.

BRICS Summit 2024

The sixteenth annual BRICS Summit has officially kicked off in Kazan, Russia, and one topic has risen to prominence: de-dollarization. At the BRICS Business Forum days prior, Russian President Vladimir Putin discussed using crypto assets and central bank digital currencies (CBDCs) for secure payments. Now, the topic has grown even further:

“There is an urgent need to reform the international financial architecture, and BRICS must play a leading role in promoting a new system that better reflects the profound changes in the international economic balance of power,” said Chinese President Xi Jinping.

Read More: Digital Rupee (e-Rupee): A Comprehensive Guide to India’s CBDC

The core of this reform is the nascent BRICS Pay system. This proposed model will use blockchain technology and CBDCs to facilitate payment options.

The system is not operational yet, but BRICS members have long discussed it as a de-dollarization strategy. A mockup of a possible new currency for this system was also presented at the Summit.

In other words, discussions have moved beyond the hypothetical. The BRICS Business Council’s Annual report explicitly discussed the urgency of finalizing these alternate economic platforms.

Some representatives advocated a system based on CBDCs like the digital yuan. This mirrors El Salvador’s main reason for making Bitcoin legal tender: further economic independence.

Read More: Crypto Regulation: What Are the Benefits and Drawbacks?

As Matthew Sigel, Head of Digital Assets Research at VanEck, reported, CBDCs are not the only assets up for debate. Russian lawmakers introduced the possibility of using Bitcoin and other assets to pay for imports, also bypassing dollar hegemony. Cryptocurrencies are consistently at the forefront of discussion for BRICS’ new economic infrastructure.

Although BRICS has been considered “an informal club” rather than a concrete force, prominent members have joined the de-dollarization plan. According to Iranian state media network IRNA, for example, Iranian President Masoud Pezeshkian proposed “international mobile payment systems,” “a shared e-commerce platform,” and other similar digital solutions.

Between China, Russia, Iran, and numerous other members, the BRICS Summit may gather enough cooperation and approval to move de-dollarization efforts forward. Representatives of the world’s major economies have all joined to discuss blockchain and cryptocurrency solutions.