Why Ethereum Needs to Release $2,650 for Hopes of Another Rally?

Ethereum extended its decline below the $2,525 support zone against the US dollar. The ETH price stayed near $2,500 and is currently trying to make an upward breakthrough.

Ethereum is still struggling to clear the USD 2,600 and USD 2,625 resistance levels. The price is now trading below $2,600 and the 100 hourly simple moving average. A major bearish trendline is forming with resistance near $2,580 on the ETH/USD hourly chart (data feed via Kraken). The pair could start another decline if it fails to clear $2,625.

Ethereum Price Faces Hurdles

Ethereum started another decline from the $2,625 zone. ETH traded below the $2,550 and $2,525 support levels to enter the red zone.

The price even peaked below $2,500 and settled below the 100 easy moving hourly average. Ether price traded as low as $2,486 and recently recovered sharply. There was a marked move above the USD 2,525 and USD 2,525 resistance levels.

The bulls pumped the price above the 50% Fib retracement level from the recent drop from the $2,624 swing high to $2,486 low. It is now facing resistance near the USD 2,580 level.

A major bearish trendline is also forming with resistance near $2,580 on the ETH/USD hourly chart. The trendline is close to the 61.8% Fib retracement level from the recent swing high drop from $2,624 to $2,486 low.

Source: ETHUSD on TradingView.com

The first major resistance is seen near the USD 2,625 level. The next major resistance is near the $2,650 level. A close above the $2,650 resistance could see a steady rise. In the mentioned case, the price could rise towards the USD 2,750 level.

New Drop in ETH?

If ethereum fails to start a fresh rise above the USD 2,625 level, it could spark another drop. An initial support on the downside is near the USD 2,550 level.

The next major support is near the $2,500 level. A close below the $2,500 support zone could push the price even below $2,480. The next major support could be near the USD 2,420 level, where the bulls could take a position. If they fail, there is a risk of a move towards the $2,350 level.

Technical indicators

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

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

Major Support Level – $2500

Major Resistance Level – $2,650

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