Ethereum price is correcting gains from the USD 2,720 resistance. ETH is now trading below $2,650 and could find bids near the $2,600 level.
- Ethereum started a downward correction from the $2,720 zone.
- The price is trading below $2,650 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $2,650 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to stay above the $2,600 support for another move higher in the near term.
Ethereum price drops again
Ethereum price extended gains and traded above the USD 2,650 level. ETH even reached the $2,700 level before the bears appeared. A high was formed at $2,728 and the price started a downward correction like Bitcoin.
There was a move below the USD 2,700 and USD 2,650 levels. The price traded below the 50% Fib retracement level of the upward move from the $2,554 swing low to the $2,728 high. Ethereum price is now trading below $2,650 and the 100-hourly Simple Moving Average.
However, the price could find bids near the $2,600 level or the 76.4% Fib retracement level of the upward move from the $2,554 swing low to the $2,728 high.
On the upside, the price seems to be facing hurdles around the USD 2,650 level. There is also a major bearish trendline forming with resistance at $2,650 on the hourly chart of ETH/USD. The first major resistance is around the $2,685 level. The next major resistance is near USD 2,720.
An upside break above the USD 2,720 resistance could call for more gains in the coming sessions. In the mentioned case, Ether could rise towards the USD 2,840 resistance zone in the short term. The next hurdle is near the USD 2,880 or USD 2,920 level.
Lose more in ETH?
If Ethereum fails to clear the USD 2,650 resistance, it could continue to decline. The initial downside support is near the $2,600 level. The first major support is near the $2,550 zone.
A clear move below the USD 2,550 support could push the price towards USD 2,520. Any further losses could send the price towards the USD 2,450 support level in the near term. The next major support is at $2,365.
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 – $2,600
Major resistance level – $2,650
