Ethereum price started a downward correction from the $2,700 zone. ETH is now consolidating and struggling to stay above the USD 2,500 support.
- Ethereum started a downward correction below the USD 2,650 and USD 2,620 levels.
- The price is trading below $2,650 and the 100-hourly Simple Moving Average.
- There was a break below a connecting bullish trendline with support at $2,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rise again if it remains above the $2,550 support zone.
Ethereum price cuts gains and revisits $2,550
Ethereum price struggled to extend gains above the USD 2,700 resistance zone. ETH started a downside correction below the $2,650 level, just like Bitcoin. There was a move below the USD 2,620 and USD 2,600 levels.
The price fell below the 23.6% Fib retracement level of the upward move from the $2,311 swing low to the $2,722 high. Additionally, there was a break below a connecting bullish trendline with support at $2,620 on the hourly chart of ETH/USD.
Ethereum price is now trading below $2,650 and the 100-hourly Simple Moving Average. However, the bulls are trying to protect more downsides below the $2,500 support zone.
If another rise occurs, the price could face hurdles near the $2,600 level and the 100-hourly Simple Moving Average. The first major resistance is around the $2,625 level. A close above the USD 2,625 level could send Ether towards the USD 2,700 resistance.
The next major resistance is near USD 2,720. An upside break above the USD 2,720 resistance could send the price higher towards the USD 2,880 resistance zone in the near term.
More disadvantages of ETH?
If Ethereum fails to clear the USD 2,625 resistance, it could continue to decline. Initial support on the downside is near $2,520 and the 50% Fib retracement level of the upward move from the $2,311 swing low to the $2,722 high. 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 2,320 support level in the near term. The next major support is at USD 2,250.
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 – $2,500
Major resistance level – $2,625
