Ethereum’s price fell heavily and traded below $2,550. ETH could rise again if it remains above the $2,400 support zone.
- Ethereum started a major decline below the USD 2,650 and USD 2,550 levels.
- The price is trading below $2,550 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $2,575 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a recovery wave if it remains above the USD 2,400 level.
Ethereum price plunges 10%
Ethereum price failed to recover and extended its decline below the USD 2,650 level. ETH, like Bitcoin, traded below the USD 2,550 and USD 2,500 support levels. It even peaked below the USD 2,400 level.
A low was formed at $2,394 and the price is now consolidating losses. There was a small recovery wave above the USD 2,420 and USD 2,440 levels. It was trading close to the 23.6% Fib retracement level of the downward move from the $2,820 swing high to the $2,394 low.
Ethereum price is now trading below $2,550 and the 100-hourly Simple Moving Average. If a recovery wave comes, the price may encounter resistance near the USD 2,500 level.
The first major resistance is around the $2,550 level. There is also a major bearish trendline forming with resistance at $2,575 on the hourly chart of ETH/USD. A close above the $2,550 level could send Ether towards the $2,600 resistance or the 50% Fib retracement level of the downward move from the $2,820 swing high to the $2,394 low.
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 2,880 resistance zone in the near term.
More disadvantages of ETH?
If Ethereum fails to clear the USD 2,500 resistance, it could continue to 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 2,350 where the bulls could emerge. Any further losses could send the price towards the USD 2,220 support level in the near term. The next major support is at USD 2,150.
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 – $2,550
