Ethereum failed to release USD 2,800 and corrected gains against the US dollar. ETH price needs to stay above the $2,600 support to avoid more downsides.

Ethereum started a downside correction after failing to surpass the USD 2,800 resistance. The price is now trading near $2,650 and the 100 hourly simple moving average. A pivotal bullish trendline is forming with support near $2,645 on the ETH/USD hourly chart (data feed via Kraken). The pair could start a big decline if it moves below USD 2,645 and USD 2,600.

Ethereum Price Drops

Ethereum made another attempt to clear the USD 2,800 resistance zone. ETH peaked near $2,814 and started another decline. There was a definite move below the USD 2,750 support level.

The price even spiked below the 50% Fib retracement level of the upward move from the $2,478 swing low to $2,815 high. It is now trading near $2,650 and the 100 hourly simple moving average. In addition, there was a test of the key USD 2,600 support level.

Ether price stayed above the 61.8% Fib retracement level from the upward move from the $2,478 swing low to $2,815 high. A crucial bullish trendline is also forming with support near $2,645 on the ETH/USD hourly chart.

An immediate resistance on the upside is near the $2,700 level. The first major resistance is near the $2,750 level. The main resistance for a larger gain is near the USD 2,800 level. A convincing move above the USD 2,800 resistance could spark a strong upward move.

Source: ETHUSD on TradingView.com

The next key resistance is near the $2,920 level, above which ether price could rise towards the $3,000 resistance zone in the near term.

Disadvantage of ETH?

If ethereum fails to start a fresh rise above the USD 2,750 resistance, it could extend its decline. An initial support on the downside is near the USD 2,645 level and the trendline.

A downward breach below the trendline support could even push the price below the $2,600 support zone. The next major support is near the USD 2,500 level, where the bulls may move. If they fail, the price could drop to $2,400.

Technical indicators

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

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

Major Support Level – $2,600

Major Resistance Level – $2,750