Ethereum price started a new decline below the $2,550 support level. ETH is facing difficulties and may recover if it crosses the $2,500 resistance area.
- Ethereum started a new decline from the $2,650 resistance area.
- The price is trading below the $2,500 level and the 100 hourly simple moving average.
- There was a break above the connecting downtrend line with resistance at $2,450 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a recovery wave if it crosses the $2,500 and $2,550 resistance levels.
Ethereum price hits
Ethereum price struggled to stay above $2,550 and started a new decline like Bitcoin. ETH fell below the $2,520 and $2,500 levels.
It tested the $2,420 support area. A bottom was formed at $2,411 and the price is now trying to recover. There was a move above the $2,450 resistance area. The price rose above the 23.6% Fibonacci retracement level of the downward move from the high of $2,582 to the low of $2,411.
Moreover, there was a break above the connected downtrend line with resistance at $2,450 on the hourly chart of the ETH/USD pair. Ethereum price is now trading below the $2,500 level and the 100 hourly simple moving average.
On the upside, the price seems to be facing hurdles near the $2,500 level and the 50% Fib retracement level for the downward move from the $2,582 swing high to the $2,411 low. The first major resistance is near the $2,520 level. Major resistance is now forming near $2,550.
A clear move above the $2,550 resistance level could send the price towards the $2,600 resistance level. A bullish break above the $2,600 resistance may require further gains in the coming sessions. In the mentioned case, the Ether price may rise towards the $2,650 resistance area.
Another drop in ETH?
If Ethereum fails to break above the $2,500 resistance level, it could start another decline. Initial support on the downside is near the $2,450 level. The first major support is near the $2,400 area.
A clear move below the $2,400 support could push the price towards $2,350. Any further losses could send the price towards the $2,320 support level in the near term. The next major support is at $2,250.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 area.
Key Support Level – $2,420
Major resistance level – $2,500