Ethereum price started a fresh decline from the $2,550 resistance zone. ETH is down over 10% and now attempts a recovery wave from the $2,300 zone.
- Ethereum is facing an increase in selling below the $2,550 zone.
- The price is trading below $2,550 and the 100-hourly Simple Moving Average.
- There is a short-term bearish trend line forming with resistance at $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a decent upward move if it settles above $2,500 and $2,550.
Ethereum Price Dives Over 10%
Ethereum price failed to clear the $2,650 resistance zone and started a fresh decline, like Bitcoin. ETH gained pace below the $2,620 and $2,550 support levels to enter a bearish zone.
The price declined over 10% and even declined below the $2,500 support zone. A low was formed at $2,309 and the price is now consolidating losses. There was a minor recovery wave above the 23.6% Fib retracement level of the downward move from the $2,855 swing high to the $2,309 low.
Ethereum price is now trading below $2,550 and the 100-hourly Simple Moving Average. There is also a short-term bearish trend line forming with resistance at $2,500 on the hourly chart of ETH/USD.
On the upside, the price seems to be facing hurdles near the $2,500 level. The first major resistance is near the $2,580 level or the 50% Fib retracement level of the downward move from the $2,855 swing high to the $2,309 low.
The main resistance is now forming near $2,650. A clear move above the $2,650 resistance might send the price toward the $2,720 resistance. An upside break above the $2,720 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,850 resistance zone or even $2,920 in the near term.
Another Decline In ETH?
If Ethereum fails to clear the $2,580 resistance, it could start another decline. Initial support on the downside is near the $2,420 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 $2,300 support. Any more losses might send the price toward the $2,200 support level in the near term. The next key support sits at $2,120.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $2,420
Major Resistance Level – $2,580
