Ethereum continues to hold support. According to technical analysis by NewsBTC’s Aayush Jindal, ETH price could continue to decline if there is no break above $2,500 and $2,550.
Ethereum Support Holds
Ethereum settled below the $2,550 support after failing to gain momentum above $2,700. ETH even declined below the $2,400 level and the 100 hourly simple moving average.
However, the bulls were active near the $2,300 zone. A bottom was formed near $2.316 and ETH is now recovering. There was a move above the $2,400 level and ETH even climbed above the 23.6% Fib retracement level of the downward move from the $2,729 high to $2,316 high. However, it is still trading below $2,500 and the 100 hourly simple moving average. An immediate resistance is near the $2,450 level.
2. The $500 Level Is Important
Besides, there is also a major bearish trend line forming with resistance near $2,450 on the hourly chart of ETH/USD. 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 stated case, it could even surpass the $2,550 level.
The next major hurdle could be $2,630. This is 76% of the downward move from $2,729 to $2,316. Close to the 4 Fib retracement 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 Oan, an initial support is near the $2,350 level. An initial key support is formed near the $2,315 level. If there is a downside break below the $2.315 and $2,300 levels, it could push the price down further. The next major support for the bulls may perhaps be near the $2,220 level.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now just above the 50 level.
- Main Support Level – $2,315
- Main Resistance Level – $2,500
