Ethereum price has started a downward correction in the $2,700 zone. ETH is currently consolidating and struggling to stay above the $2,500 support level.
- Ethereum started a downward correction below the $2,650 and $2,620 levels.
- The price is trading below $2,650 and the 100 hourly simple moving average.
- The bullish trend line connecting the support level at $2,620 has broken down on the hourly chart of ETH/USD based on data provided by Kraken.
- The pair could rally again if it stays above the $2,550 support zone.
Ethereum Price Declines and Revisits $2,550
Ethereum price struggled to extend its uptrend above the $2,700 resistance zone. ETH, like Bitcoin, began a downward correction below the $2,650 level. There was movement below the $2,620 and $2,600 levels.
The price broke below the 23.6% Fib rectification level of the upward move from the $2,311 swing low to the $2,722 high. Additionally, it broke below the connected bullish trend line holding support at $2,620 on the hourly chart of ETH/USD.
Ethereum price is currently trading below $2,650 and the 100-hourly simple moving average. However, the bulls are trying to protect further downside below the $2,500 support zone.
If there is another uptrend, the price may hit a hurdle near the $2,600 level and the 100-hour SMA. The first major resistance level is near the $2,625 level. A close above the $2,625 level could see Ether move towards the $2,700 resistance level.
The next major resistance is near $2,720. A break above the $2,720 resistance could push the price higher towards the $2,880 resistance in the short term.
What are the other downsides of ETH?
If Ethereum fails to break the $2,625 resistance, it could continue to decline. The initial support for the downtrend is near $2,520 and the 50% Fibonacci correction level of the upward move from the $2,311 swing low to the $2,722 high. The first major support is near the $2,500 area.
A clear move below the $2,500 support level could see the price rise to $2,450. Further losses could see the price rise to the $2,320 support level in the short term. The next major support level is $2,250.
Technical indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Key Support Level – $2,500
Key Resistance Level – $2,625