Ethereum price shows signs of recovery amid bearish trend

Ethereum (CRYPTO:ETH) has recently dipped below key support levels at $2,420 and $2,400, testing the $2,300 mark before showing signs of recovery. 

Despite this, Ethereum remains under pressure, trading below $2,500 and the 100-hourly Simple Moving Average (SMA). 

To regain momentum, Ethereum must overcome significant resistance levels. 

The ETH/USD pair is currently attempting a recovery from the $2,300 zone. 

After hitting a low at $2,308, the price managed to rise above minor resistance levels at $2,320 and $2,350. 

It retraced up to the 23.6% Fibonacci level of the recent downward move from the $2,564 swing high to the $2,308 low. 

However, the path upward remains challenging due to technical hurdles. 

Ethereum faces resistance around the $2,440 level, which aligns with the 50% Fibonacci retracement level of the recent decline. 

Additionally, a key bearish trend line has formed on the hourly chart with resistance near this level. 

For a more substantial recovery, Ethereum needs to break through the $2,440 resistance and subsequently the $2,500 mark. 

Clearing these levels could lead to a rise toward $2,550 and then $2,650. 

An upside break above $2,650 might set the stage for a push toward the $2,800 resistance zone. 

Conversely, if Ethereum fails to surpass the $2,440 resistance, it risks another downturn. 

Initial support is near $2,320, with stronger support at $2,300. 

A decisive move below $2,300 could push the price further down to $2,250, and possibly to $2,120. 

If bearish momentum persists, the next key support is at $2,040. 

Technical indicators show that the hourly Moving Average Convergence Divergence (MACD) for ETH/USD is losing momentum in the bearish zone. 

The Relative Strength Index (RSI) remains below the 50 mark, suggesting continued caution for traders.

At the time of writing, the Ethereum (ETH) price was $2,378.51.