Ethereum price is correcting gains from the USD 2,320 resistance zone. ETH is moving lower and could even test $2,050 before the bulls take a stand.
- Ethereum corrects gains below the $2,250 support zone.
- The price is trading below $2,240 and the 100-hourly Simple Moving Average.
- Two bearish trendlines are forming with resistance around $2,230 and $2,260 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue its decline and revisit the $2,050 support zone.
Ethereum price extends losses
Ethereum price started a downward correction from the $2,325 level. ETH fell below the USD 2,300 and USD 2,265 levels. The bears were even able to push the pair below the USD 2,200 level, just like Bitcoin.
A low was formed around $2,180 and the price is now trying to make a new move higher. There was a move above the USD 2,200 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,326 swing high to the $2,180 low.
Ethereum is now trading below $2,240 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance around the $2,230 level. Two bearish trendlines are forming with resistance around $2,230 and $2,260 on the hourly chart of ETH/USD.
The second trendline is close to the 50% Fib retracement level of the downward move from the $2,326 swing high to the $2,180 low. A close above the USD 2,260 resistance could send the price towards USD 2,325.
Source: ETHUSD on TradingView.com
The main resistance is at $2,350. A clear move above the $2,350 zone could trigger a significant increase. The next resistance is at $2,420, above which Ethereum could rise and test the $2,500 zone.
More disadvantages to ETH?
If Ethereum fails to clear the USD 2,260 resistance, it could trigger another decline. The initial downside support is near the $2,200 level.
The first major support could be the $2,180 zone. A downside break and a close below $2,180 could lead to more bearish moves. In the said case, Ether could revisit the USD 2,120 support. Any further losses could send the price towards the USD 2,050 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $2,180
Major resistance level – $2,260
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