Ethereum declined below the $2,650 support zone. ETH price is struggling and there is a risk of a move below $2,500, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Continued to Fall
Ethereum started a decline and traded below the key $2,650 support zone. ETH tested the $2,500 support and settled below the 100 hourly simple moving average. Having made a local bottom around $2,508, ETH is now consolidating losses.
Initial resistance is near the $2,550 level. This is close to the 23.6% Fib retracement level of the low from the $2,684 low to $2,508 low. The first major resistance is seen near the $2,600 level. This is close to the 50% Fib retracement level of the recent decline from the $2,684 high to $2,508 high. There is also a connecting bearish trend line forming with resistance near $2,620 on the hourly chart of ETH/USD. The next major resistance could be near the $2,650 level and the 100 hourly simple moving average. Any further gains could lead the price towards the $2,800 resistance zone in the near term.
Will Ethereum Drop?
Jindal could continue its decline if Ethereum fails to start a fresh increase above the $2,650 level. An initial support on the downside is near the $2,510 level. The next major support is near the $2,500 level, where the price could gain bearish momentum. In the indicated case, ETH could revisit the $2,400 support zone. More losses may require a move towards the $2,300 level in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is currently below the 40 level.
- Major Support Level – $2,500
- Major Resistance Level – $2,650
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