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Ethereum price started a new decline from the $2,720 resistance. ETH is back below $2,550 and it may be difficult to start a new rally in the short term.
- Ethereum started a new decline from the $2,720 resistance area.
- The price is trading below $2,550 and the 100-hour Simple Moving Average.
- There was a break below a key bullish trend line with support at $2,560 on the ETH/USD hourly chart (data feed via Kraken).
- The pair can extend losses if it fails to stay above the $2,450 support area.
Ethereum Price Dive Below $2,550
Ethereum price struggled to stay above $2,650 and started a new low just like Bitcoin. ETH dropped significantly below the $2,620 and $2,600 levels.
There was a break below the main bullish trend line with support at $2,560 on the ETH/USD hourly chart. The pair declined below the 50% Fib retracement level of the rising wave from the $2,488 swing low to $2,719 high. Bears even pushed the price below $2,550.
Ethereum price is now trading below $2,550 and the 100-hour Simple Moving Average. It is now approaching the $2,460 support area and the 61.8% Fib retracement level of the rising wave from the $2,488 swing low to the $2,719 high.
On the other hand, the price seems to be facing obstacles near the $2,550 level. The first major resistance is near the $2,580 level. Key resistance now forms around $2,610. A clear move above the $2,610 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 case, Ether can rise to the resistance area of ​​$2.720.
More downside to ETH?
If Ethereum fails to clear the $2,550 resistance, it could continue to decline. The first support on the downside is near the $2,480 level. The first major support sits near the $2,450 area.
A clear move below the $2,450 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 trending in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 area.
Major Support Level – $2,450
Major Resistance Level – $2,550
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