Ethereum failed to cross $2600 and started a new decline against the US Dollar. ETH price holds $2,400 support, but sellers are likely to face near $2,550.
- Ethereum made two attempts to gain traction above $2,625, but failed.
- The price is now trading well below $2,550 and the 100 hourly simple moving average.
- There was a break below a major ascending channel with support near $2,520 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair remains above $2,400 to avoid further downside in the near term.
Ethereum price gains
Ethereum rose above the $2,550 and $2,580 resistance levels. However, ETH failed to gain strength above $2,620, which triggered a bearish reaction.
There was a break below the $2,580 and $2,550 support levels. Besides, there is a break below a major ascending channel with support near $2,520 on the hourly chart of ETH/USD. The pair settled below the $2,550 support level and Simple moving average per 100 hours.
Even Ether fell below the 50% Fib retracement level of the upward move from the $2,313 low to $2,626 high. It tested the $2,420 support area.
It appears that the 61.8% Fib retracement level of the upward move from the $2,313 low to $2,626 high is acting as support. Ether is now recovering, but is likely to face resistance near $2,520. the first great resistance It is near the $2550 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The next major resistance is near the $2,620 level, above which the price may rise higher towards the $2,720 level in the near term. The main obstacle to a bigger increase now is $2,800.
Breaking down the downsides of ETH?
If Ethereum fails to break above the $2,520 and $2,550 resistance levels, it may continue to decline. There is initial support on the downside near the $2,420 level.
The first major support is near the $2,400 level and the recent low. A break-down below the $2,400 support area could push the price towards the $2,350 support level. Any further losses may require a test of the $2,310 support in the upcoming sessions.
MACD per hour – ETH/USD’s MACD is slowly losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is currently rising towards the 50 level.
Key Support Level – $2400
Key Resistance Level – $2550