Ethereum price started another decline below the $2,550 support. ETH could drop towards the $2,250 support zone before bulls emerge.
- Ethereum started a fresh decline below the $2,550 level.
- 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 $2,500 on the hourly chart of ETH/USD (data feed from Kraken).
- The pair needs to stay above $2,400 to start another increase in the near term.
Ethereum price extends losses
Ethereum price failed to sustain above the $2,620 support and extended losses. ETH traded below the $2,550 and $2,500 support levels as BitcoinIt even tested the $2,400 support.
A low was formed near $2,401 and the price is now attempting a recovery wave. There was a move above the $2,420 level. The price is testing the 23.6% Fibonacci retracement level of the downward wave from the high of $2,596 to the low of $2,401.
Ethereum price is now trading below $2500 and the 100 hour simple moving averageThere is also a connecting bearish trend line forming with the resistance at $2500 on the hourly chart of ETH/USD.
On the upside, the price seems to be facing hurdles near the $2,500 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the downward wave from the $2,596 high to $2,401 low.
The first major resistance is near the $2,550 level. A close above this level could send Ether towards the $2,620 resistance. The next key resistance is near $2,660. An upside break above the $2,660 resistance could send the price towards the $2,800 resistance zone in the near term.
More disadvantages for ETH?
If Ethereum fails to clear the $2,500 resistance, it could start another decline. The initial support on the downside is near $2,420. The first major support lies near the $2,400 zone.
A clear move below the $2,400 support could propel the price towards $2,320 where the bulls could emerge. Any further losses could send the price towards the $2,250 support level in the near term. The next key support lies at $2,110.
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: $2400
Major Resistance Level: $2500
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