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The price of Ethereum began a downside correction after encountering resistance at the $2,700 level. Currently, ETH is holding above the $2,550 support and may be poised for further gains.
- Ethereum is targeting a fresh increase from the $2,550 support level.
- The price is currently trading below $2,620 and the 100-hourly Simple Moving Average.
- A connecting bearish trend line is forming with resistance at $2,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to maintain above the $2,550 support to initiate a new upward trend in the near term.
Ethereum Price Sees Downside Correction
Ethereum’s price faced challenges in surpassing the $2,700 resistance zone. ETH formed a high near $2,700 and began a downside correction similar to Bitcoin. This led to a decline below the $2,620 level.
The price even dipped below the $2,600 mark and tested the $2,550 support. A low was established at $2,554, and the price is now attempting a fresh increase. It has climbed back above the $2,580 level. Ethereum also cleared the 23.6% Fibonacci retracement level of the downward move from the $2,701 swing high to the $2,554 low.
Currently, Ethereum’s price is trading below $2,620 and the 100-hourly Simple Moving Average. On the upside, the price is encountering resistance near the $2,600 level. The first significant resistance is around the $2,620 level.
Additionally, a connecting bearish trend line is forming with resistance at $2,620 on the hourly chart of ETH/USD. This trend line aligns closely with the 50% Fibonacci retracement level of the downward move from the $2,701 swing high to the $2,554 low.
Potential Upside Break
The next key resistance level is near $2,645. If Ethereum manages an upside break above the $2,645 resistance, it could pave the way for more gains. In such a scenario, ETH might rise towards the $2,700 resistance zone in the near term. The subsequent hurdle could be around the $2,720 level or even $2,800.
Another Drop in ETH?
If Ethereum fails to overcome the $2,620 resistance, it may initiate another decline. The initial support on the downside is near the $2,550 level, with the first major support zone near $2,525.
A decisive move below the $2,525 support might push the price towards $2,450. Further losses could drive the price down to the $2,400 support level in the short term. The next key support is positioned at $2,320.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 zone.
Major Support Level – $2,550
Major Resistance Level – $2,620
