Ethereum (ETH) will turn red, which could trigger additional losses

Ethereum failed to rebound above the USD 2,500 resistance against the US dollar. ETH price could accelerate its decline if it does not stay above the USD 2,440 support.

  • Ethereum was trading below the USD 2,550 and USD 2,500 support levels.
  • The price is now trading just below $ 2,500 and the 100-hour simple moving average.
  • An important bearish trendline is forming on the hourly chart of ETH / USD (data feed via Kraken) with resistance near USD 2,580.
  • The pair is likely to fall further below the USD 2,440 support zone in the near future.

Ethereum price could prolong losses

Ethereum began another decline from well over $ 2,600. ETH price has broken the key support level of $ 2,550, similar to Bitcoin near $ 40,000. The price even broke the USD 2,500 support level and entered a short-term bearish zone.

The price is now trading just below $ 2,500 and the 100-hour simple moving average. The most recent low was formed at $ 2,444 before the price attempted a minor upward correction.

There was a break above the $ 2,500 mark. Ether rebounded above the 23.6% fib retracement level of the recent decline from the swing low of $ 2,668 to the low of $ 2,444. However, the bears were active near the $ 2,550 resistance zone.

The next major resistance is near the $ 2,555 level. It is close to the 50% fib retracement level of the recent drop from the $ 2,668 low to the $ 2,444 low. A major bearish trendline is also forming on the hourly chart of ETH / USD with resistance near USD 2,580.

Source: ETHUSD on TradingView.com

A clear break and close above the USD 2,550 and USD 2,580 resistance levels could trigger a decent rise. In the case mentioned, the price could hit the USD 2,700 level again.

More losses in ETH?

If Ethereum cannot rebound above the USD 2,550 and USD 2,580 resistance levels, it could prolong its decline. Immediate support on the downside is near the $ 2,465 level.

The next big support is near the $ 2,440 mark. A sharp break below the USD 2,440 support level could accelerate losses. In the named case, the price could easily test $ 2,400. The next big support could be near $ 2,330, which is where the bulls may take a stand.

Technical indicators

Hourly MACDThe MACD for ETH / USD is slowly gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH / USD is now below the 50 mark.

Great level of support – $ 2,440

Great resistance level – $ 2,550

Comments are closed.