Ethereum Prints Bearish Technical Pattern, Why It Could Revisit $2.2K
Ethereum failed to surpass $2,725 and started another decline against the US dollar. ETH price could continue to fall if there is no move above USD 2,500.
Ethereum failed to clear the USD 2,700 and USD 2,725 resistance levels. The price is trading below USD 2,500 and the 100 hourly simple moving average. There was a break below a key bullish trendline with support near USD 2,500 on the ETH/USD hourly chart (data feed via Kraken). The pair could start a fresh rise if there is significant movement above the USD 2,500 resistance zone.
Ethereum Price Nears $2,700
Ethereum started a significant recovery wave above the USD 2,500 and USD 2,550 resistance levels. ETH even managed to clear the $2,600 level and the 100 hourly simple moving average.
However, the ether price failed to gain strength above the $2,700 level. It peaked near $2,729 and the price started another decline. There was a break below the USD 2,600 and USD 2,500 support levels. In addition, there was a break below a key bullish trendline with support near USD 2,500 on the ETH/USD hourly chart.
The pair traded below the 50% Fib retracement level from the upward move from the $2,171 swing low to $2,729 high. Ether is now trading below USD 2,500 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the USD 2,450 level. The first major resistance is near the USD 2500 level. A clear move above the USD 2,500 resistance could trigger a steady rise. In the aforementioned case, the pair could rise towards the USD 2,650 level.
If there is a break above the USD 2,650 resistance zone, the price could even attempt a move above the USD 2,700 zone. The next major resistance is near the USD 2,850 level.
Lose more in ETH?
If ethereum fails to start another rise above the USD 2,500 level, it could start another decline. An initial support on the downside is near the USD 2,340 level.
The first major support is now forming near the USD 2,300 level. It is near the 76.4% Fib retracement level of the upward move from the $2,171 swing low to $2,729 high. The next major support for the bulls may be near the $2,200 zone.
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 – $2,300
Major Resistance Level – $2,550