Ethereum corrected gains from the $2,640 area against the US dollar. ETH price is now trading above the key support level at $2500 and the hourly 100 SMA.
- Ethereum failed to liquidate $2,650 and started a downside correction.
- The price is now trading above $2500 and a 100 hourly simple moving average.
- There is a major bearish channel forming with resistance near $2,550 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to start a new high as long as it is above the $2500 level.
Ethereum price contract key support
Ethereum gained pace above the $2,600 resistance and Extend its upward movement. However, ETH failed to break above the $2,650 resistance. A top formed near $2,638 before it started a downside correction.
There was a break below the $2,600 and $2,550 support levels. Ether price fell below the 50% Fib retracement level of the recent increase from the $2,461 swing low to $2,638 high. The price even traded below the $2,520 support.
It is now trading above $2,500 and Simple moving average per 100 hours. It holds the 76.4% Fib retracement level of the recent increase from the $2,461 swing low to $2,638 high.
Source: ETHUSD on TradingView.com
There is also a major bearish channel forming with resistance near $2,550 on the hourly chart of ETH/USD. A clear bullish breakout above channel resistance could start a new high $2,550. The next major resistance is near the $2600 level. The main resistance remains near $2,640 and $2,650. Any further gains could open the door to a bigger increase towards $2,750.
Breaking the downside in ETH?
If Ethereum fails to surpass the $2,550 and $2,600 resistance levels, it may continue to decline. There is initial support on the downside near the $2,510 level.
The first major support is near the $2500 level and the hourly 100 SMA. A bearish break below the 100-hourly simple moving average could push the price of ether towards the $2,450 support area. Any further losses may pave the way for a decline towards the $2,400 level in the near term.
MACD per hour – ETH/USD’s MACD is now losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is currently approaching the 50 level.
Key Support Level – $2500
Key Resistance Level – $2550