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Ethereum Price Trims Gains: Is the Rally Losing Steam?

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Ethereum price is correcting its gains from the $2,720 resistance level. ETH is now trading below the $2,650 level and you may find quotes near the $2,600 level.

  • Ethereum started a downward correction from the $2,720 area.
  • The price is trading below the $2,650 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance at $2,650 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must remain above the $2,600 support level to start a new rally in the near term.

Ethereum prices are falling again

Ethereum price extended its gains and was trading above the $2,650 level. ETH even crossed the $2,700 level before the bears showed up. The high was formed at $2,728 and the price started a downward correction like Bitcoin.

There was a move below the $2,700 and $2,650 levels. The price traded below the 50% Fib retracement level of the upward move from the swing low of $2,554 to the swing high of $2,728. Ethereum price is now trading below the $2,650 level and the 100 hourly simple moving average.

However, the price may find offers near the $2,600 level or the 76.4% Fib retracement level of the upward move from the $2,554 swing low to the $2,728 high.

On the upside, the price appears to be facing hurdles near the $2,650 level. There is also a major bearish trend line forming with resistance at $2,650 on the hourly chart of the ETH/USD pair. The first major resistance is near the $2,685 level. The next major resistance is near $2,720.

A bullish break above the $2,720 resistance may require further gains in the coming sessions. In the mentioned case, Ether could rise towards the $2,840 resistance area in the near term. The next hurdle is near the $2880 or $2920 level.

More losses in ETH?

If Ethereum fails to break above the $2,650 resistance level, it may continue to move lower. Initial support on the downside is near the $2,600 level. The first major support is near the $2,550 area.

A clear move below the $2,550 support could push the price towards $2,520. Any further losses could send the price towards the $2,450 support level in the near term. The next major support is at $2,365.

Technical indicators

MACD per hourThe MACD indicator for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 area.

Major support level – $2,600

Major resistance level – $2,650

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