Ethereum Bears Keeps Pushing, Why Decline Isn’t Over Yet


Ethereum extended its decline below the $2,700 support against the US dollar. The ETH price is struggling and may even drop below the $2500 support.

Ethereum started a major decline below the USD 2,800 support level. The price is now trading below $2,700 and the 100 hourly simple moving average. A major bearish trendline is forming with resistance near USD 2,700 on the ETH/USD hourly chart (data feed via Kraken). The pair could recover, but the bears could remain active near $2,650 and $2,700.

Ethereum price turns red

Ethereum failed to correct and recover above the $2,750 resistance zone. ETH fell below the $2,750 level and the 100 hourly simple moving average.

As a result, there were additional losses below the $2,650 support. The price gained pace and even fell below USD 2,550. A low is being formed near $2,511 and the price is now consolidating losses. An immediate resistance on the upside is near the USD 2,560 level.

The 23.6% Fib retracement level from the recent drop from the $2,752 swing high to $2,511 low is also near the $2,560 level. The next major resistance is near the $2,650 level.

By the way, the 50% Fib retracement level from the recent drop from the $2,752 swing high to $2,511 low is near the $2,650 level. The main resistance is now forming near the $2,720 level and the 100 hourly simple moving average. A major bearish trendline is also forming with resistance near USD 2,700 on the ETH/USD hourly chart.

Source: ETHUSD on TradingView.com

A clear move above $2,720 could trigger a steady rise. In the mentioned case, the price could climb towards a resistance zone of $2,880 or even $3,000.

Lose more in ETH?

If ethereum fails to start a wave of recovery above the $2,650 level, it could spark another drop. An initial support on the downside is near the $2,510 level or the recent low.

The next major support is near the $2,500 level. A downward breach below $2,500 could trigger another major drop. The next major support is near the USD 2,420 level. Even more losses may require a move to $2,350 in the near term.

Technical indicators

Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $2500

Major Resistance Level – $2,650

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