Ethereum price started a downside correction from the $2,700 resistance. ETH is now above the $2,550 support and might aim for more gains.
- Ethereum is aiming for a fresh increase from the $2,550 support.
- The price is trading below $2,620 and the 100-hourly Simple Moving Average.
- There is a connecting bearish trend line forming with resistance at $2,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $2,550 support to start a fresh increase in the near term.
Ethereum Price Sees Downside Correction
Ethereum price struggled to clear the $2,700 resistance zone. ETH formed a high near $2,700 and started a downside correction like Bitcoin. There was a drop below the $2,620 level.
The price even declined below the $2,600 level and tested $2,550. A low was formed at $2,554 and the price is now attempting a fresh increase. It climbed above the $2,580 level. Ether cleared the 23.6% Fib retracement level of the downward move from the $2,701 swing high to the $2,554 low.
Ethereum price is now trading below $2,620 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,600 level. The first major resistance is near the $2,620 level.
There is also a connecting bearish trend line forming with resistance at $2,620 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the downward move from the $2,701 swing high to the $2,554 low.
The next key resistance is near $2,645. An upside break above the $2,645 resistance might call for more gains. In the stated case, Ether could rise toward the $2,700 resistance zone in the near term. The next hurdle sits near the $2,720 level or $2,800.
Another Drop In ETH?
If Ethereum fails to clear the $2,620 resistance, it could start another decline. Initial support on the downside is near the $2,550 level. The first major support sits near the $2,525 zone.
A clear move below the $2,525 support might push the price toward $2,450. Any more losses might send the price toward the $2,400 support level in the near term. The next key support sits at $2,320.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $2,550
Major Resistance Level – $2,620
Source: NewsBTC.com
