Ethereum extended its downside correction below $2,500 against the US Dollar. ETH price is recovering higher, but it is now trading below the hourly 100 simple moving average.
- Ethereum failed to stay above the $2,500 support area and extended its decline.
- The price is now trading well below $2,500 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $2,460 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to face strong selling interest near the $2,460 and $2,500 levels.
Ethereum price increases losses
Ethereum topped out near the $2,640 level and started a new low, similar to Bitcoin. ETH struggled to stay above the $2,550 support area and moved into a bearish territory.
There was a clear break under $2500 support area and a 100-hour simple moving average. Even Ether fell below the $2,400 level and traded as low as $2,353. It is now correcting losses and trading above the $2400 level.
The price recovered above the 23.6% Fib retracement level of the recent decline from the $2,638 high to $2,353 low. On the upside, there is an initial resistance near the $2,450 level.
There is also a major bearish trend line forming with resistance near $2,460 on the hourly chart of ETH/USD. The main resistance is now forming near the $2550 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent decline from the $2,638 high to $2,353 low.
Source: ETHUSD on TradingView.com
A close above the $2500 level and a follow-up above the $2550 level is needed to start a steady increase in the near term.
More losses in ETH?
If Ethereum fails to break above the $2,450 and $2,500 resistance levels, it may continue to decline. 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 the recent low and the $2,350 support level could push the price towards the $2,300 level. Any further losses may require a move towards the $2,250 level in the near term.
MACD per hour – ETH/USD’s MACD is now gaining momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is currently rising towards the 50 level.
Key Support Level – $2,350
Key Resistance Level – $2500