Ethereum price corrected gains and tested the $2,320 zone. ETH is now struggling and might decline toward the $2,220 support zone.
- Ethereum started a correction from the $2,580 zone and tested $2,320.
- The price is trading below $2,500 and the 100-hourly Simple Moving Average.
- There is a connecting bearish trend line forming with resistance at $2,540 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain strength if it clears the $2,550 resistance in the near term.
Ethereum Price Dips Again
Ethereum price struggled to clear the $2,520 resistance and started a downside correction, unlike Bitcoin. ETH traded below the $2,500 and $2,440 support levels.
The bears were able to push the price below the 50% Fib retracement level of the upward move from the $2,308 swing low to the $2,509 high. The price even spiked below the $2,440 level, but the bulls were active near the $2,400 zone.
The price is stable above the 61.8% Fib retracement level of the upward move from the $2,308 swing low to the $2,509 high. Ethereum price is now trading below $2,450 and the 100-hourly Simple Moving Average. There is also a connecting bearish trend line forming with resistance at $2,540 on the hourly chart of ETH/USD.
If there is another increase, the price could face resistance near the $2,460 level. The next key resistance is near the $2,500 level. The first major resistance is near the $2,550 level and the trend line. A clear move above the $2,550 resistance might send the price toward the $2,580 resistance.
An upside break above the $2,580 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,700 resistance zone or even $2,780 in the near term.
Another Decline In ETH?
If Ethereum fails to clear the $2,500 resistance, it could start a fresh decline. Initial support on the downside is near the $2,400 level. The first major support sits near the $2,350 zone.
A clear move below the $2,350 support might push the price toward the $2,320 support. Any more losses might send the price toward the $2,220 support level in the near term. The next key support sits at $2,120.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $2,400
Major Resistance Level – $2,500
