Ethereum Price Turns Red: Is This a Temporary Dip?
Ethereum price started a fresh decline below the $2,550 support. ETH is struggling and could recover if it clears the $2,500 resistance zone.
- Ethereum began a new downward movement from the $2,650 resistance level.
- The price is currently trading below $2,500 and the 100-hourly Simple Moving Average.
- A bearish trend line connecting resistance at $2,450 was broken on the ETH/USD hourly chart (data feed via Kraken).
- If it surpasses the $2,500 and $2,550 resistance levels, the pair could initiate a recovery wave.
Ethereum Price Takes a Hit
The Ethereum price struggled to stay above $2,550 and began a fresh decline, similar to Bitcoin. ETH fell below the $2,520 and $2,500 levels.
The price tested the $2,420 support zone and formed a low at $2,411. It is now attempting to recover, with a move above the $2,450 resistance zone. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,582 swing high to the $2,411 low.
In addition, a bearish trend line connecting resistance at $2,450 was broken on the hourly chart of ETH/USD. Currently, Ethereum price is trading below $2,500 and the 100-hourly Simple Moving Average.
On the upside, the price is facing hurdles around the $2,500 level and the 50% Fib retracement level of the downward move from the $2,582 swing high to the $2,411 low. The first major resistance is near the $2,520 level, with the main resistance forming near $2,550.
If the price clears the $2,550 resistance, it could move towards the $2,600 resistance. Breaking above the $2,600 resistance could lead to further gains in the coming sessions, with Ether potentially rising towards the $2,650 resistance zone.
Another Decline in ETH?
If Ethereum fails to clear the $2,500 resistance, it might experience another decline. Initial support on the downside is near the $2,450 level, with the first major support sitting around the $2,400 zone.
A clear move below the $2,400 support could push the price towards $2,350. Further losses might send the price towards the $2,320 support level in the near term, with the next key support at $2,250.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing bearish momentum.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $2,420
Major Resistance Level – $2,500