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Is the Bullish Momentum Fading?

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Ethereum price continued its decline below the $2,450 level. ETH is now consolidating and may have difficulty recovering above the $2,425 level.

  • Ethereum price fell further and was trading below the $2,400 area.
  • The price is trading below the $2,420 level and the 100 hourly simple moving average.
  • There is a solid bearish trend line forming with resistance at $2,425 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must remain above the $2,350 support level to start a new rally in the near term.

Ethereum price holds support

Ethereum price remained in a bearish zone and extended its losses below the $2,550 level. ETH traded below the $2,450 support level to enter a bearish zone like Bitcoin. There was also a move below the $2,400 level.

A bottom has been formed near $2,352 and the price is now consolidating losses. There was a slight increase above the $2,365 level. The price is still below the 23.6% Fibonacci retracement level of the downward move from the high of $2,655 to the low of $2,352.

Ethereum price is now trading below the $2,420 level and the 100 hourly simple moving average. On the upside, the price appears to be facing hurdles near the $2,420 level. There is also a solid downtrend line forming with resistance at $2,425 on the hourly chart of the ETH/USD pair.

The first major resistance is near the $2,500 level or the 50% Fibonacci retracement level of the downward move from the $2,655 swing high to the $2,352 swing low. The next major resistance is near $2,535.

source: ETHUSD on TradingView.com

A bullish break above the $2,535 resistance may require further gains in the coming sessions. In the mentioned case, Ether could rise towards the $2,650 resistance area in the near term. The next hurdle is near the $2680 or $2665 level.

More losses in ETH?

If Ethereum fails to break above the $2,420 resistance level, it may continue to move lower. Initial support on the downside is near the $2,350 level. The first major support is near the $2,320 area.

A clear move below the $2,320 support could push the price towards $2,250. Any further losses could send the price towards the $2,150 support level in the near term. The next major support is at $2,120.

Technical indicators

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

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

Major Support Level – $2,350

Major resistance level – $2,420

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