Ethereum also started a new decline after failing in the key region like Bitcoin. According to technical analysis by NewsBTC’s Aayush Jindal, ETH could continue to decline if there is no action above $2,500.
Ethereum Sees $2,700
Ethereum rallied as high as $2,729 after starting a decent recovery wave above the $2,550 resistance levels, where it started a fresh decline. There was a break below the $2,600 and $2,500 support levels. Besides, there was a break below a key bullish trend line with support near $2,500 on the hourly chart of ETH/USD.
ETH traded below the 50% Fib retracement level of the upward move from the $2,171 high to $2,729 high. It is now trading below $2,500 and the 100 hourly simple moving average.
An immediate resistance is near the $2.450 level. The first major resistance is near the $2,500 level. A clear move above the $2.500 resistance could start a decent increase. In the indicated case, it could rise to the $2.650 level. If there is an upside break above the $2.650 resistance zone, the price might attempt a move above the $2,700 zone. The next major resistance is near the $2,850 level.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to start a fresh increase above the $2,500 level, it could start a fresh decline. According to him, an initial support is near the $2,340 level. An initial key support is now forming near the $2,300 level. This is 76% of the upward move from $2,171 to $2,729. Close to the 4 Fib retracement level. The next major support for the bulls may perhaps be near the $2,200 zone.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now below the 50 level.
- Main Support Level – $2.300
- Main Resistance Level – $2.550
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