Ethereum failed to surpass $2,780 and corrected. According to technical analysis by NewsBTC’s Aayush Jindal, ETH needs to stay above $2,570 for it to start a fresh increase in the near term.
Ethereum Is Correcting
Yesterday, Ethereum even broke the $2,750 resistance level but faced strong resistance near $2,780. A top was formed near $2,775 and the price started a downside correction. There was a break below the $2,700 and $2,650 levels. ETH price settled below the $2,650 level and the 100 hourly simple moving average. The price settled below the 50% Fib retracement level of the upward move from the $2,445 low to $2,775 high. Besides, there was a break below a key bullish trend line with support near $2,660 on the hourly chart of ETH/USD. The pair is now approaching the $2,570 support zone. This is close to the 61.8% Fib retracement level of the upward move from the $2,445 high to $2,775 high.
$2,570 Crucial
If ETH stays above the $2,570 support, it could start a fresh increase. An initial resistance is near the $2,620 area. The first major resistance is near the $2,650 level and the 100 hourly simple moving average. The next major resistance is near the $2,780 level, where the price could move higher. In the stated case, the price could rally towards the $2,880 level.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to start a fresh increase above the $2,650 level, it may continue to move lower. An initial support on the downside is near the $2,570 level. The next major support is near the $2,550 level. A close below the $2,570 and $2,550 support levels could push the price down further. In the indicated case, the price could see $2,445 again.
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 – $2,570
- Major Resistance Level – $2,650
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