Ethereum Price Lacks Traction: Can It Overcome the Slowdown?

Ethereum price extended losses and tested the $2,380 support zone. ETH is recovering losses and struggling to gain pace to surpass the $2.5250 level.

  • Ethereum started a recovery wave from the $2,380 zone.
  • The price is trading below $2,500 and the 100 hourly simple moving average.
  • A short-term ascending channel is forming with support at $2,480 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a new rise if it breaks the resistance levels of $2,520 and $2,550.

Ethereum price points higher

Ethereum price extended its decline below the $2250 level unlike bitcoin. ETH traded as low as $2,379 and recently began an upward correction.

There was a minor increase above the $2,420 level. The price traded above the 50% Fibonacci retracement level of the descending wave from the high of $2,562 to the low of $2,379. The bulls even pushed the price above the $2,500 resistance but struggled near $2,520.

Ethereum price is now trading below $2,500 and the 100 hour simple moving average. There is also a short-term ascending channel forming with support at $2,480 on the hourly chart of ETH/USD.

On the upside, the price seems to face obstacles near the $2,520 level and the 100 hourly simple moving average. It is near the 76.4% Fib retracement level of the descending wave from the high of $2,562 to the low of $2,379.

The first major resistance is near the $2,550 level. The main resistance is now forming near $2,600. A clear move above the $2,600 resistance could send the price towards the $2,650 resistance. A bullish break above the $2,650 resistance could require further gains in the coming sessions. In the given case, Ether could rise towards the $2,750 resistance zone.

Another drop in ETH?

If Ethereum fails to overcome the $2,520 resistance, it could start another decline. Initial support on the downside is near the $2,480 level. The first major support lies near the $2,420 area.

A clear move below the $2,420 support could push the price towards $2,380. Any further losses could send the price towards the $2,320 support level in the near term. The next key support is at $2,250.

Technical Indicators

MACD hourlyThe MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now near the 50 zone.

Main Support Level: $2,450

Main Resistance Level: $2,520

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