Ethereum price extended its rally above the $2,500 area. ETH is now correcting gains and may find support near the $2,400 area.
- Ethereum has started a downward correction from the $2,520 area.
- The price is trading below the $2,450 level and the 100 hourly simple moving average.
- There was a breakout below a major uptrend line with support at $2,450 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must remain above the $2,400 support level to start another rally in the near term.
Ethereum price corrects gains
Ethereum price extended its upward movement above the $2,400 level. ETH was able to break through the $2,450 resistance level to move into positive territory like Bitcoin. The price managed to rise above the $2,500 resistance area.
However, the bears were active above the $2,500 level. The high was formed at $2,519 and the price started a downward correction. There was a move below the $2,450 support level. The price fell below the 23.6% Fibonacci retracement level of the upward move from the swing low of $2,311 to the swing high of $2,519.
Moreover, there was a breakout below a major uptrend line with support at $2,450 on the hourly chart of ETH/USD. Ethereum price is now trading below the $2,450 level and the 100 hourly simple moving average.
However, the bulls are protecting the 50% Fib retracement level of the upward move from the low of $2,311 to the high of $2,519. On the upside, the price appears to be facing hurdles near the $2,450 level. A clear move above the $2,450 resistance level could send the price towards the $2,500 resistance level.
A bullish break above the $2,500 resistance may require further gains in the coming sessions. In the mentioned case, Ether could rise towards the $2,580 resistance area in the near term. The next hurdle is near the $2,650 or $2,665 level.
More losses in ETH?
If Ethereum fails to break above the $2,450 resistance level, it could start another decline. Initial support on the downside is near the $2,420 level. The first major support is near the $2,400 area.
A clear move below the $2,400 support could push the price towards $2,320. Any further losses could send the price towards the $2,250 support level in the near term. The next major support is at $2,120.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Major support level – $2,400
Major resistance level – $2,450