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Ethereum Price Weakens: Can It Defend the $2,500 Level?

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Ethereum price started a downside correction from the $2,700 area. Now, Ethereum is consolidating and struggling to stay above the $2,500 support level.

  • Ethereum started a bearish correction below the $2650 and $2620 levels.
  • The price is trading below the $2650 level and the 100-hour simple moving average.
  • There was a break below the connected bullish trend line with support at $2,620 on the hourly chart of the ETH/USD pair (data feed via Kraken).
  • The pair could rise again if it stays above the $2,550 support area.

Ethereum Price Pares Gains, Returns to $2,550 Level

Ethereum price struggled to extend its gains above the $2,700 resistance area. Ethereum started a bearish correction below the $2,650 level like Bitcoin. There was a move below the $2,620 and $2,600 levels.

The price declined below the 23.6% Fib retracement level of the upward move from the $2,311 low to $2,722 high. Moreover, there was a break below the ascending trend line connected with support at $2,620 on the hourly chart of the ETH/USD pair.

Ethereum price is now trading below $2,650 and the 100-hour simple moving average. However, bulls are trying to protect further declines below the $2,500 support zone.

If another rally occurs, the price could face hurdles near the $2,600 level and the 100-hour simple moving average. The first major resistance is near the $2,625 level. A close above the $2,625 level could send Ether towards the $2,700 resistance.

The next major resistance is near $2,720. An upside break above the $2,720 resistance could push the price higher towards the $2,880 resistance area in the near term.

Are there more negatives to ETH?

If Ethereum fails to clear the $2,625 resistance level, it could continue moving lower. Initial support on the downside is near $2,520 and the 50% Fib retracement level of the upside move from the $2,311 swing low to $2,722 high. The first major support is near the $2,500 area.

A clear move below the $2,500 support could push the price towards $2,450. Any further losses could push the price towards the $2,320 support in the near term. The next major support level is at $2,250.

Technical indicators

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

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

Key Support Level – $2500

Key Resistance Level – $2625

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