According to technical analysis by Aayush Jindal of NewsBTC, Ethereum could retest the $2,445 level where bulls could emerge.
Ethereum Brought Back $2,600
Ethereum started a fresh decline yesterday well above $2,700 and there was a close below the $2,600 level and the 100 hourly simple moving average. ETH dropped as low as $2,525 and is now retracing some of its losses.
The first major resistance is seen near the $2,620 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $2,600 on the hourly chart of ETH/USD. The next major resistance is near the $2,650 level. This is close to the 50% Fib retracement level of the drop from the $2,775 low to $2,525 low. A close above the $2,650 resistance could start a decent increase. In the stated case, ETH could rise to the $2,750 level, where the bears could take a stand in the near term.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $2,620 level, it may continue to move lower. An initial support on the downside is near the $2,525 level. The next major support is near the $2,500 level. A close below the $2,525 and $2,500 support levels could push the price down further. In the stated case, the price could see $2,445 again. Further declines may perhaps open the doors for a larger decline towards the $2,320 or even $2,250 level.
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 now below the 50 level.
- Major Support Level – $2,500
- Major Resistance Level – $2,650
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