The Ethereum price extended its rise above the $2,500 zone. ETH is now correcting gains and could find support near the $2,400 zone.
- Ethereum started a downward correction from the $2,520 zone.
- The price is trading below $2,450 and the 100-hourly Simple Moving Average.
- There was a break below a key bullish trendline with support at $2,450 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to remain above the $2,400 support level for renewed upside in the near term.
Ethereum price corrects gains
Ethereum price continued its upward move above the USD 2,400 level. ETH was able to clear the resistance at $2,450 to move into a positive zone like Bitcoin. The price was able to climb above the USD 2,500 resistance zone.
However, the bears were active above $2,500. A high was formed at $2,519 and the price started a downward correction. There was a move below the $2,450 support level. The price fell below the 23.6% Fib retracement level of the upward move from the $2,311 swing low to the $2,519 high.
Additionally, there was a break below a key bullish trendline with support at $2,450 on the hourly chart of ETH/USD. Ethereum price is now trading below $2,450 and the 100-hourly Simple Moving Average.
However, the bulls are protecting the 50% Fib retracement level of the upward move from the $2,311 swing low to the $2,519 high. On the upside, the price seems to be facing hurdles around the USD 2,450 level. A clear move above the USD 2,450 resistance could send the price towards the USD 2,500 resistance.
An upside break above the USD 2,500 resistance could fuel more gains in the coming sessions. In the mentioned case, Ether could rise towards the USD 2,580 resistance zone in the short term. The next hurdle is near the USD 2,650 or USD 2,665 level.
Lose more in ETH?
If Ethereum fails to clear the USD 2,450 resistance, it could trigger another decline. The initial downside support is near the $2,420 level. The first major support is near the $2,400 zone.
A clear move below the USD 2,400 support could push the price towards USD 2,320. Any further losses could send the price towards the USD 2,250 support level in the near term. The next major support is at $2,120.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $2,400
Major resistance level – $2,450