Ethereum price is gaining pace below the $2,550 resistance. ETH is now trading above $2,500 but may struggle to recover above $2,550.
- Ethereum started a downside correction below the $2,550 zone.
- The price is trading below $2,520 and the 100 hourly simple moving average.
- There is a short-term consolidation pattern forming with resistance at $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must break above the $2,420 support to begin a fresh increase in the near term.
Ethereum price drops 5%
Ethereum price remained in a bearish zone and extended losses below the $2,600 level. ETH traded below the $2,550 support to enter a bearish zone as Bitcoin. There was also a move below the $2,500 level.
A low was formed near $2,413 and the price is now consolidating losses. There was a small increase above the $2,450 level. The price rose above the 23.6% Fib retracement level of the downward move from the $2,655 high to $2,413 low.
Ethereum price is now trading below $2,520 and the 100 hourly simple moving average. On the upside, the price appears to be facing hurdles near the $2,520 level. There is also a short-term consolidation pattern forming with resistance at $2,500 on the hourly ETH/USD chart.
The first major resistance is near the $2,535 level or the 50% Fibonacci retracement level of the downward movement from the $2,655 swing high to $2,413 low. The next key resistance is near $2,550.
A bullish breakout above the $2,550 resistance could require further gains in the coming sessions. In the stated case, Ether could rise towards the $2,620 resistance zone in the near term. The next hurdle lies near the $2,650 or $2,665 level.
More losses in ETH?
If Ethereum fails to overcome the $2,520 resistance, it could continue falling. Initial downside support is near the $2,440 level. The first major support is near the $2,420 zone.
A clear move below the $2,420 support could push the price towards $2,350. Further losses could send the price towards the $2,250 support level in the near term. The next important support lies at $2,120.
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 – $2,420
Main resistance level – $2,550
