Ethereum price has declined significantly and is trading below $2,550. Ethereum may start rising again if it stays above the $2,400 support area.
- Ethereum started a major decline below the $2650 and $2550 levels.
- The price is trading below the $2,550 level and the 100-hour simple moving average.
- A major bearish trend line is forming with resistance at $2,575 on the hourly chart of the ETH/USD pair (data via Kraken).
- The pair may start a recovery wave if it stays above the $2,400 level.
Ethereum price drops by 10%
Ethereum price failed to recover and extended its decline below the $2650 level. Ethereum traded below the $2550 and $2500 support levels like Bitcoin. It even rose below the $2400 level.
The low was formed at $2,394 and now the price is trying to consolidate its losses. There was a slight recovery wave above the $2,420 and $2,440 levels. It traded near the 23.6% Fib retracement level of the downside move from the $2,820 swing high to $2,394 swing low.
Ethereum price is now trading below $2,550 and the 100-hour simple moving average. If a recovery wave occurs, the price may face resistance near the $2,500 level.
The first major resistance is near the $2,550 level. There is also a major bearish trend line forming with resistance at $2,575 on the hourly chart of the ETH/USD pair. A close above $2,550 could send Ether towards the $2,600 resistance level or the 50% Fib retracement level of the downside move from the $2,820 swing high to $2,394 swing low.
The next major resistance is near $2,660. An upside break above the $2,660 resistance could push the price towards the $2,880 resistance area in the near term.
Are there more negatives to ETH?
If Ethereum fails to break above the $2,500 resistance level, it could continue moving lower. The initial support on the downside is near $2,420. The first major support is near the $2,400 area.
A clear move below the $2,400 support could push the price towards the $2,350 level where bulls may emerge. Any further losses could push the price towards the $2,220 support level in the near term. The next major support level is at the $2,150 level.
Technical indicators
MACD hourly – The MACD indicator for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Key Support Level – $2400
Key Resistance Level – $2550
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