Ethereum extended its decline and was trading near $2,300 against the US Dollar. ETH price is now recovering and could start a strong increase if it crosses $2,550.
- Ethereum extended its decline below the $2,400 and $2,300 support levels.
- The price is now well below $2600 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $2,480 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to form an inverse head and shoulders pattern with resistance near $2550.
Ethereum price could rise steadily
Ethereum failed to stay above the key $2,550 support level, and this is what happened extended its retreat. ETH traded below the $2,440 and $2,400 support levels.
It even broke the $2,350 level and settled well below the 100 hourly simple moving average. The bottom formed near $2,313 and the price is now correcting higher. It broke the $2400 resistance level. Ether also rose above the 23.6% Fib retracement level of the recent decline from the $2,850 high to $2,313 low.
However, the price is now facing a strong resistance near $2,500. There is also a major bearish trend line forming with resistance near $2,480 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
It seems that the ether is likely to form an inverted head and shoulders pattern with resistance near $2550. The 50% Fib retracement level of the recent decline from $2,850 to the $2,313 low is also near the $2,580 level.
If there is a clear break above the trend line and a follow-up move above $2,550, the price may start a strong increase in the near term. next one great resistance It could be $2640.
More losses in ETH?
If Ethereum fails to surpass the $2,500 and $2,550 resistance levels, its decline may extend. There is initial support on the downside near the $2,400 level.
The first major support is near the $2,350 level. A break-down below $2350 and the recent bottom could accelerate losses. The next major support is near the $2,220 or $2,200 level.
MACD per hour – ETH/USD’s MACD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently approaching the 50 level.
Key Support Level – $2,350
Key Resistance Level – $2550