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Ethereum price started to decline again below the USD 2,550 support. ETH could dive towards the $2,250 support zone before the bulls emerge.
- Ethereum started a new decline below the USD 2,550 level.
- The price is trading below $2,500 and the 100-hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance at $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to stay above $2,400 to rise again in the near term.
Ethereum price extends losses
Ethereum price failed to hold above the USD 2,620 support and extended losses. ETH, like Bitcoin, traded below the USD 2,550 and USD 2,500 support levels. It even tested the $2,400 support.
A low was formed near USD 2,401 and the price is now trying to make a recovery wave. There was a move above the USD 2,420 level. The price is testing the 23.6% Fib retracement level of the downward wave from the $2,596 swing high to the $2,401 low.
The Ethereum price is now trading below $2,500 and the 100-hourly Simple Moving Average. A connecting bearish trendline is also forming with resistance at $2,500 on the hourly chart of ETH/USD.
On the upside, the price seems to be facing hurdles near the USD 2,500 level and the 100-hourly Simple Moving Average. It is close to the 50% Fib retracement level of the downward wave from the $2,596 swing high to the $2,401 low.
The first major resistance is around the $2,550 level. A close above the USD 2,550 level could send Ether towards the USD 2,620 resistance. The next major resistance is near USD 2,660. An upside break above the USD 2,660 resistance could send the price higher towards the USD 2,800 resistance zone in the near term.
More disadvantages of ETH?
If Ethereum fails to clear the USD 2,500 resistance, it could trigger another decline. The initial downside support is near USD 2,420. 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 where the bulls could emerge. Any further losses could send the price towards the USD 2,250 support level in the near term. The next major support is at $2,110.
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 – $2,400
Major resistance level – $2,500