Ethereum price extended its increase above the $2,500 zone. ETH is now correcting gains and might revisit the $2,350 support zone.
Ethereum started a downside correction from the $2,600 resistance.
The price is trading above $2,400 and the 100-hourly Simple Moving Average.
There was a break below a connecting bullish trend line with support at $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could find bids near $2,350 and start a fresh increase in the near term.
Ethereum Price Aims Fresh Increase
Ethereum price remained supported and started a fresh increase above $2,350, beating Bitcoin. ETH gained pace for a move above the $2,400 resistance zone.
The bulls were able to push the price above the $2,550 resistance zone. The price gained over 35% and recently tested the $2,600 resistance zone. A high was formed at $2,624 and the price is now correcting gains. There was a minor decline below the 50% Fib retracement level of the upward move from the $2,272 swing low to the $2,624 high.
There was a break below a connecting bullish trend line with support at $2,500 on the hourly chart of ETH/USD. However, the bulls are still active above $2,400. Ethereum price is now trading above $2,400 and the 100-hourly Simple Moving Average.
On the upside, the price seems to be facing hurdles near the $2,500 level. The next key resistance is near the $2,550 level. The first major resistance is near the $2,620 level. A clear move above the $2,620 resistance might send the price toward the $2,650 resistance.
An upside break above the $2,650 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,720 resistance zone or even $2,780 in the near term.
More Losses In ETH?
If Ethereum fails to clear the $2,500 resistance, it could start a fresh downside correction. Initial support on the downside is near the $2,400 level. The first major support sits near the $2,350 zone and the 76.4% Fib retracement level of the upward move from the $2,272 swing low to the $2,624 high.
A clear move below the $2,350 support might push the price toward the $2,275 support. Any more losses might send the price toward the $2,220 support level in the near term. The next key support sits at $2,200.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $2,350
Major Resistance Level – $2,500
