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Ethereum price started a downside correction from the $2,700 resistance level. Ethereum is now above the $2,550 support level and could target more gains.
- Ethereum is targeting a fresh high from the $2,550 support level.
- The price is trading below the $2,620 level and the 100-hour simple moving average.
- There is a connected bearish trend line forming with resistance at $2,620 on the hourly chart of the ETH/USD pair (data feed via Kraken).
- The pair must remain above the $2,550 support level to start a fresh rally in the near term.
Ethereum price is witnessing a downward correction
Ethereum price struggled to break above the resistance area at $2,700. Ethereum formed a high near $2,700 and started a downside correction like Bitcoin. There was a dip below the $2,620 level.
The price even dropped below the $2600 level and tested the $2550 level. A low was formed at $2554 and the price is now trying to make a new high. It rose above the $2580 level. Ether surpassed the 23.6% Fib retracement level of the downside move from the $2701 swing high to $2554 swing low.
Ethereum price is now trading below $2,620 and the 100-hour simple moving average. On the upside, the price seems to be facing hurdles near the $2,600 level. The first major resistance is near the $2,620 level.
There is also a connected bearish trend line forming with resistance at $2,620 on the hourly chart of the ETH/USD pair. The trend line is near the 50% Fib retracement level of the downward move from the $2,701 swing high to $2,554 swing low.
The next major resistance is near $2,645. An upside break above the $2,645 resistance could invite further gains. In the mentioned case, Ether could rally towards the $2,700 resistance area in the near term. The next hurdle is near the $2,720 or $2,800 level.
Another drop in ETH?
If Ethereum fails to clear the $2,620 resistance level, it could start declining again. Initial support on the downside is near the $2,550 level. The first major support is near the $2,525 area.
A clear move below the $2,525 support could push the price towards $2,450. Any further losses could push the price towards the $2,400 support in the near term. The next major support level is at $2,320.
Technical indicators
MACD hourly – 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.
Key Support Level – $2550
Key Resistance Level – $2620
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