Ethereum continued to fall below $2,500 support against the US dollar. The ETH price is on the rebound, but must surpass $2,680 in order to show any significant improvement.
- Ethereum declined below the $2,500 level before rising again.
- The current price trades below $2,600.
- On the hourly chart for ETH/USD, there is a bearish trendline that forms with resistance at $2,600 (data feed via Kraken).
- A steady recovery could be initiated if the pair surpasses $2,600 or $2,680.
Ethereum Price Faces Hurdle
Ethereum was still in bearish territory below $2,650. ETH fell below $2,500 support and closed below 100-hourly simple moving average.
The price has corrected its losses since a low formed at $2,445 The resistance of $2,500 was breached. The Ether price even soared to above the 50% Fib Retracement level, which was the result of the decline from $2,648 high to $2.445 low.
But, bears continued to be active around the $2570 level. It’s near the 61.8% Fib level of the recent fall from the $2.648 swing high, to the $2.445 low.
Near the $2,600 mark (the most recent break-out zone), is where you will find your first major resistance. A key bearish trendline is also in place with resistance close to $2,600. This chart shows the hourly graph of USD/ETH. Next major resistance could be at the 200 hourly moving average (simple) and $2,680 levels.
Source: TradingView.com, ETHUSD
The steady rise could be initiated if the close is above the SMA for 100 hours and $2,680 after that. If the previous scenario is true, then the price may rise up to $2800 or even $3,880.
There are more downsides to ETH
If the $2,600 mark is not reached, ethereum could begin a new decline. The $2,500 mark is the initial support for the downside.
Near the $2,445 support zone, the next significant support, which could be a key area of resistance. Below this level, the price may gain bearish momentum. The price may fall towards the $2,000.00 support level in the above scenario. In the short term, any further losses could lead to a decline towards $2,300.
Technical indicators
Minutely MACD – In the bullish zone, the MACD for USD/ETH is currently gaining momentum.
Hourly RSI – The RSI is at 50 for USD/ETH.
Major Support Level – $2,500
Major Resistance Level – $2,680