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Ethereum price extended losses and tested the USD 2,450 support zone. ETH is recovering losses and facing many hurdles around the $2,550 level.
- Ethereum started a downside correction below the USD 2,550 support.
- The price is trading below $2,550 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $2,560 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new rise if it overcomes the USD 2,550 and USD 2,600 resistance levels.
Ethereum price begins recovery
Ethereum’s price extended its decline below the $2,600 level, as did Bitcoin. ETH traded below the USD 2,550 and USD 2,500 support levels to enter a short-term bearish zone.
The price traded as low as $2,445 and is currently correcting losses. There was a small increase above the USD 2,500 level. The price traded above the 23.6% Fib retracement level of the downward move from the $2,758 swing high to the $2,445 low.
Ethereum price is now trading below $2,550 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles around the USD 2,550 level. There is also a major bearish trendline forming with resistance at $2,560 on the hourly chart of ETH/USD.
The first major resistance is around the $2,600 level. It is close to the 50% Fib retracement level of the downward move from the $2,758 swing high to the $2,445 low.
A clear move above the USD 2,600 resistance could send the price towards the USD 2,650 resistance. An upside break above the USD 2,650 resistance could call for more gains in the coming sessions. In the mentioned case, Ether could rise towards the USD 2,700 resistance zone in the short term. The next hurdle is near the USD 2,720 or USD 2,750 level.
Another drop in ETH?
If Ethereum fails to clear the USD 2,550 resistance, it could trigger another decline. The initial downside support is near the $2,520 level. The first major support is near the $2,500 zone.
A clear move below the USD 2,500 support could push the price towards USD 2,450. Any further losses could send the price towards the USD 2,450 support level in the near term. The next major support is at $2,420.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bullish zone.
RSI per hour – The RSI for ETH/USD is now near the 50 zone.
Major support level – $2,450
Major resistance level – $2,550
