Ethereum price corrects gains from $2,720 resistance. ETH is now trading below $2,650 and may receive bids near the $2,600 level.
- Ethereum started a lower correction from the $2,720 area.
- The price is trading below $2,650 and the 100-hour Simple Moving Average.
- There is an important bearish line running through the $2,650 resistance on the hourly chart of ETH/USD (data feed via Kraken).
- The pair should stay above the $2,600 support to start a new uptrend in the near term.
The price of Ethereum is falling again
Ethereum price extended gains and traded above the $2,650 level. ETH even cleared the $2,700 level before the bears appeared. The high was formed at $2,728 and the price started to be corrected as low as Bitcoin.
There was a move below the $2,700 and $2,650 levels. Price traded below the 50% Fib retracement level of the upward move from $2,554 to the low to $2,728 high. Ethereum price is now trading below $2,650 and the 100-hour Simple Moving Average.
However, the price could find bids near the $2,600 level or the 76.4% Fib retracement level for an upward move from the $2,554 swing low to the $2,728 high.
On the other hand, the price seems to be facing obstacles near the $2,650 level. There is also a key bearish line forming with resistance at $2,650 on the hourly chart of ETH/USD. The first major resistance is near the $2,685 level. The next key resistance is near $2,720.
A break above $2,720 could call for more gains in future sessions. In the mentioned scenario, Ether can rise to the resistance area of ​​$2,840 in the near term. The next hurdle is near the $2,880 or $2,920 level.
More Loss on ETH?
If Ethereum fails to clear the $2,650 resistance, it could continue to decline. The first support on the downside is near the $2,600 level. The first major support sits near the $2,550 area.
A clear move below the $2,550 support could push the price towards $2,520. Another loss could send the price to the $2,450 support level in the near term. The next key support remains at $2,365.
Technical References
MACD per hour – MACD of ETH/USD is trending in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Major Support Level – $2,600
Major Resistance Level – $2,650