Ethereum failed to break the $ 2,600 mark and began another decline against the US dollar. ETH price holds the $ 2,400 support but is likely to face sellers near $ 2,550.
- Ethereum made two attempts to gain strength above $ 2,625 but failed.
- The price is now trading well below $ 2,550 and the 100-hour simple moving average.
- The ETH / USD hourly chart (data feed via Kraken) broke below a major rising channel with support near USD 2,520.
- The pair remains above $ 2,400 to avoid further downward movement in the short term.
Ethereum price reduces profits
Ethereum climbed above the USD 2,550 and USD 2,580 resistance levels. However, ETH failed to gain strength above $ 2,620, causing a bearish response.
There was a break below the USD 2,580 and USD 2,550 support levels. There is also a break under a major upside channel with support near USD 2,520 on the hourly ETH / USD chart. The pair settled below the $ 2,550 support and the 100-hour simple moving average.
Ether even fell below the 50% Fib retracement level of the move up from the $ 2,313 low to the $ 2,626 high. It tested the USD 2,420 support zone.
It appears that the 61.8% Fib retracement level of the move up from the $ 2,313 low to the $ 2,626 high is acting as support. Ether is now recovering, but it is likely to encounter resistance near $ 2,520. The first major resistance is near the $ 2,550 level and the 100-hour simple moving average.
Source: ETHUSD on TradingView.com
The next major resistance is near the $ 2,620 level, above which the price could rise towards the $ 2,720 level in the short term. The main hurdle for a major surge is now at $ 2,800.
Disadvantages break in the ETH?
If Ethereum fails to break through the USD 2,520 and USD 2,550 resistance levels, it could go further down. Initial support on the downside is near the USD 2,420 mark.
The first major support is near the $ 2,400 mark and recent lows. A downside break below the USD 2,400 support zone could move the price towards the USD 2,350 support. Further losses could potentially require a test of the $ 2,310 support in the upcoming sessions.
Technical indicators
Hourly MACD – The MACD for ETH / USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH / USD is currently rising towards the 50 level.
Great level of support – $ 2,400
Great resistance level – $ 2,550
