Ethereum turns red, which could trigger a stable recovery
Ethereum extended its decline below the $2,400 support zone against the US dollar. ETH price is recovering but needs to clear $2,550 for steady upward movement.
Ethereum extended its decline below the $2,500 and $2,400 support levels. The price is trading below USD 2,500 and the 100 hourly simple moving average. A major bearish trendline is forming with resistance near USD 2,450 on the ETH/USD hourly chart (data feed via Kraken). The pair could extend losses if it fails to recover above USD 2,500 and USD 2,550.
Ethereum price continues to struggle
Ethereum started a big decline after closing below the $3,000 level. ETH traded below the key USD 2500 support zone to move into a bearish zone.
The price even traded below the $2,400 level and settled below the 100 easy moving hourly average. Finally, it traded as low as $2,160 and is currently correcting higher. There was a move above the $2,300 and $2,350 levels.
Ether price climbed above the 50% Fib retracement level from the recent drop from the $2,547 swing high to $2,160 low. An initial resistance on the upside is near the USD 2,420 zone. A major bearish trendline is also forming with resistance near USD 2,450 on the ETH/USD hourly chart.
The trendline is close to the 76.4% Fib retracement level from the recent drop from the $2,547 swing high to $2,160 low. The first major resistance is near the $2,500 level. The main resistance is near the $2,550 level.
Source: ETHUSD on TradingView.com
If there is a breach upward above the USD 2,550 zone resistance, the price could start a significant recovery. The next major resistance is near the $2,750 level.
Lose more in ETH?
If ethereum fails to start a wave of recovery above the $2,550 level, it could continue to fall. An initial support on the downside is near the USD 2,320 level.
The first significant support is now forming near the USD 2,250 level. A downward breach below the USD 2,250 level could spark another strong decline. The next major support for the bulls may be near the USD 2,150 zone. More losses could push the price towards the $2,000 level.
Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now near the 50 level.
Major Support Level – $2,150
Major Resistance Level – $2,550