Ethereum price declined heavily and traded below $2,550. ETH could start another increase if it stays above the $2,400 support zone.
Ethereum started a major decline below the $2,650 and $2,550 levels.
The price is trading below $2,550 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance at $2,575 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a recovery wave if it stays above the $2,400 level.
Ethereum Price Dives 10%
Ethereum price failed to recover and extended its decline below the $2,650 level. ETH traded below the $2,550 and $2,500 support levels like Bitcoin. It even spiked below the $2,400 level.
A low was formed at $2,394 and the price is now consolidating losses. There was a minor recovery wave above the $2,420 and $2,440 levels. It traded close to the 23.6% Fib retracement level of the downward move from the $2,820 swing high to the $2,394 low.
Ethereum price is now trading below $2,550 and the 100-hourly Simple Moving Average. If there is a recovery wave, the price could face resistance near the $2,500 level.
The first major resistance is near the $2,550 level. There is also a key bearish trend line forming with resistance at $2,575 on the hourly chart of ETH/USD. A close above the $2,550 level might send Ether toward the $2,600 resistance or the 50% Fib retracement level of the downward move from the $2,820 swing high to the $2,394 low.
The next key resistance is near $2,660. An upside break above the $2,660 resistance might send the price higher toward the $2,880 resistance zone in the near term.
More Downsides In ETH?
If Ethereum fails to clear the $2,500 resistance, it could continue to move down. Initial support on the downside is near $2,420. The first major support sits near the $2,400 zone.
A clear move below the $2,400 support might push the price toward $2,350 where the bulls could emerge. Any more losses might send the price toward the $2,220 support level in the near term. The next key support sits at $2,150.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $2,400
Major Resistance Level – $2,550
