Ethereum price is correcting gains from the USD 2,820 resistance. ETH could rise again unless there is a close below the $2,645 support.
- Ethereum corrects gains below the USD 2,780 and USD 2,750 levels.
- The price is trading below $2,720 and the 100-hourly Simple Moving Average.
- There was a break below a key bullish trendline with support at $2,740 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could find bids around the $2,650 and $2,645 levels.
Ethereum price begins downward correction
Ethereum price extended its rise above the USD 2,750 resistance level. ETH even climbed above $2,800 before the bears appeared. A high was formed at $2,820 and the price started a downward correction like Bitcoin.
There was a move below the USD 2,780 level. The price fell below the 50% Fib retracement level of the upwave from the $2,535 swing low to the $2,820 high. Additionally, there was a break below a key bullish trendline with support at $2,740 on the hourly chart of ETH/USD.
Ethereum price is now trading below $2,740 and the 100-hourly Simple Moving Average. However, the bulls are likely to remain active near the USD 2,645 support. It is close to the 61.8% Fib retracement level of the upward wave from the $2,535 swing low to the $2,820 high.
If another rise occurs, the price could face hurdles around the USD 2,720 level. The first major resistance is around the $2,740 level. A close above the USD 2,740 level could send Ether towards the USD 2,820 resistance. The next major resistance is near USD 2,880. An upside break above the USD 2,880 resistance could send the price higher towards the USD 3,000 resistance zone in the near term.
More disadvantages of ETH?
If Ethereum fails to clear the USD 2,740 resistance, it could continue falling. The initial downside support is near $2,645. The first major support is near the $2,600 zone.
A clear move below the USD 2,600 support could push the price towards USD 2,550 where the bulls could emerge. Any further losses could send the price towards the USD 2,500 support level in the near term. The next major support is at $2,440.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $2,645
Major resistance level – $2,740