Ethereum also continued to decline and settled below the $2,700 support. ETH is struggling but it could dip below the $2,500 support, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Turns Red
Ethereum failed to recover towards the $2,750 resistance zone and settled below both this level and the 100 hourly simple moving average. As a result, it continued to decline below the $2,650 support. The decline gained momentum and even hit $2,550. A bottom was formed near $2,511 and the price is now consolidating losses. An immediate resistance is near the $2,560 level. The 23.6% Fib retracement level of the drop from the $2,752 low to $2,511 low is also near the $2,560 level. The next major resistance is near the $2,650 level.
Also, the 50% Fib retracement level of the drop from the $2,752 high to $2,511 low is also near the $2,560 level. The main resistance is now forming near the $2,720 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $2,700 on the hourly chart of ETH/USD.
$2,720 Significant
A clear move above $2,720 could start a decent uptrend. In the stated case, the price could rally higher to the $2,880 resistance zone or even $3,000.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to start a recovery wave above the $2,650 level, it could start another decline. An initial support on the downside is near the $2,510 level or the recent low.
The next major support is formed near the $2,500 level. A downside break below $2,500 could trigger another major drop. The next major support is near the $2,420 level. More losses may require a move towards $2,350 in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is 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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