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Ethereum price started a downward correction from the USD 2,700 resistance. ETH is now above the USD 2,550 support and could be aiming for more gains.
- Ethereum is aiming for another surge against the $2,550 support.
- The price is trading below $2,620 and the 100-hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance at $2,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to stay above the $2,550 support for another move higher in the near term.
Ethereum price sees downward correction
Ethereum price struggled to break the USD 2,700 resistance zone. ETH reached a high of almost $2,700 and, like Bitcoin, began a downward correction. There was a decline below the USD 2,620 level.
The price even fell below the USD 2,600 level and tested USD 2,550. A low was formed at $2,554 and the price is now trying to make a new increase. It climbed above the USD 2,580 level. Ether has crossed the 23.6% Fib retracement level of the downward move from the $2,701 swing high to the $2,554 low.
Ethereum price is now trading below $2,620 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles around the USD 2,600 level. The first major resistance is around the $2,620 level.
A connecting bearish trendline is also forming with resistance at $2,620 on the hourly chart of ETH/USD. The trendline is close to the 50% Fib retracement level of the downward move from the $2,701 swing high to the $2,554 low.
The next major resistance is near USD 2,645. An upside break above the USD 2,645 resistance could call for more gains. 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 2,800 level.
Another drop in ETH?
If Ethereum fails to clear the USD 2,620 resistance, it could trigger another decline. The initial downside support is near the USD 2,550 level. The first major support is near the $2,525 zone.
A clear move below the USD 2,525 support could push the price towards USD 2,450. Any further losses could send the price towards the USD 2,400 support level in the near term. The next major support is at $2,320.
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 – $2,550
Major resistance level – $2,620