Ethereum price is correcting gains below the $2,650 resistance. ETH is now trading near the $2,600 support and could face many obstacles.
- Ethereum started a downside correction below the $2,650 zone.
- The price is trading below $2,620 and the 100 hourly simple moving average.
- There is a bearish trend line forming with resistance at $2,630 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must remain above the $2,550 support to begin a fresh increase in the near term.
Ethereum Price Takes a Hit
Ethereum price struggled to remain above the $2,700 level. ETH initiated a downside correction below the $2,650 support level as Bitcoin. There was also a move below the $2,600 level.
A low was formed near $2,575 and the price is now consolidating losses. There was a small increase above the $2,600 level. The price rose above the 23.6% Fibonacci retracement level of the downward move from the $2,672 high to $2,575 low.
Ethereum price is now trading below $2,640 and the 100-hour Simple Moving Average. On the upside, the price appears to be facing hurdles near the $2,625 level. There is also a bearish trend line forming with resistance at $2,630 on the hourly ETH/USD chart.
The trend line is close to the 50% Fibonacci retracement level of the downward movement from the $2,672 swing high to $2,575 swing low. The first major resistance is near the $2,650 level. The next key resistance is near $2,665.
A bullish breakout above the $2,665 resistance could call for more gains in the coming sessions. In the stated case, Ether could rise towards the $2,700 resistance zone in the near term. The next hurdle lies near the $2,720 or $2,800 level.
More losses in ETH?
If Ethereum fails to overcome the $2,630 resistance, it could continue falling. Initial downside support is near the $2,600 level. The first major support is near the $2,550 zone.
A clear move below the $2,550 support could push the price towards $2,500. Further losses could send the price towards the $2,450 support level in the near term. The next important support lies at $2,320.
Technical Indicators
MACD per hour – The MACD for ETH/USD is losing strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $2,575
Main resistance level – $2,630