Ethereum Prints Bearish Technical Pattern, Why It Could Revisit $2.2K
Ethereum failed to surpass $2,725 and started a fresh decline against the US Dollar. ETH price could continue to move down if there is no move above $2,500.
Ethereum failed to clear the $2,700 and $2,725 resistance levels.
The price is trading below $2,500 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if there is a clear move above the $2,500 resistance zone.
Ethereum Price Tops Near $2,700
Ethereum started a decent recovery wave above the $2,500 and $2,550 resistance levels. ETH even cleared the $2,600 level and the 100 hourly simple moving average.
However, ether price failed to gain strength above the $2,700 level. A high was formed near $2,729 and the price 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.
The pair traded below the 50% Fib retracement level of the upward move from the $2,171 swing low to $2,729 high. Ether is now trading below $2,500 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $2,450 level. The first major resistance is near the $2,500 level. A clear move above the $2,500 resistance might start a steady increase. In the stated case, the pair could rise towards the $2,650 level.
If there is an upside break above $2,650 resistance, zone, the price could even attempt a move above the $2,700 zone. The next major resistance is near the $2,850 level.
More Losses in ETH?
If ethereum fails to start a fresh increase above the $2,500 level, it could start a fresh decline. An initial support on the downside is near the $2,340 level.
The first key support is now forming near the $2,300 level. It is near the 76.4% Fib retracement level of the upward move from the $2,171 swing low to $2,729 high. The next major support for the bulls may perhaps be near the $2,200 zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $2,300
Major Resistance Level – $2,550
