Ethereum price extended losses and tested the $2,380 support area. ETH is experiencing losses and is struggling to find momentum above the $2.5250 level.
- Ethereum started a wave of recovery from the $2,380 area.
- The price is trading below $2,500 and the 100-hour Simple Moving Average.
- There is a temporary rising channel forming supported by $2,480 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could start a new uptrend if it clears the $2,520 and $2,550 resistance levels.
Ethereum Price Aims to Rise
Ethereum price extended its decline below the $2,250 level unlike Bitcoin. ETH traded as low as $2,379 and recently started an inverse correction.
There was a slight uptick above the $2,420 level. Price traded above the 50% Fib retracement level of the downward wave from $2,562 swing high to $2,379 low. The bulls even pushed the price above the $2,500 resistance but struggled around $2,520.
Ethereum price is now trading below $2,500 and the 100-hour Simple Moving Average. There is also a short-term rising channel being formed supported by $2,480 on the ETH/USD hourly chart.
On the other hand, the price seems to be facing obstacles near the $2,520 level and the 100-hour Simple Moving Average. It is near the 76.4% Fib retracement level of the downward wave from the $2,562 swing high to the $2,379 low.
The first major resistance is near the $2,550 level. The main resistance is now around $2,600. A clear move above the $2,600 resistance could send the price to the $2,650 resistance. A break above $2,650 may require additional gains in future sessions. In the mentioned scenario, Ether can rise to the resistance area of ​​$2,750.
Another Drop in ETH?
If Ethereum fails to clear the $2,520 resistance, it could start another decline. The first support on the downside is near the $2,480 level. The first major support sits near the $2,420 area.
A clear move below the $2,420 support could push the price to $2,380. Another loss could send the price to the $2,320 support level in the near term. The next key support remains at $2,250.
Technical References
MACD per hour – MACD of ETH/USD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now near the 50 level.
Major Support Level – $2,450
Major Resistance Level – $2,520