ethereum price is correcting gains from the $2,320 resistance zone. eth is moving lower and could even test $2,050 before the bulls take a stance.
- ethereum is correcting gains below the $2,250 support zone.
- The price is trading below $2240 and the 100 hourly simple moving average.
- Two bearish trend lines are forming with resistance near $2230 and $2260 on the hourly chart of eth/USD (data via Kraken).
- The pair could extend 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 $2,300 and $2,265 levels. The bears were even able to push the pair below the $2200 level, like bitcoin.
A low was formed near $2,180 and the price is now attempting a fresh rise. There was a move above the $2200 level. The price rose above the 23.6% Fibonacci retracement level of the downward move from the high of $2326 to the low of $2180.
ethereum is now trading below $2,240 and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $2230 level. Two downtrend lines are forming with resistance near $2230 and $2260 on the hourly chart of eth/USD.
The second trend line is near the 50% Fibonacci retracement level of the downward move from the high of $2,326 to the low of $2,180. A close above the $2,260 resistance could send the price towards $2,325.
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Fountain: ETHUSD on TradingView.com
The main resistance is located at $2,350. A clear move above the $2,350 zone could start a decent rise. The next resistance lies at $2,420, above which ethereum could rally and test the $2,500 zone.
More disadvantages in eth?
If ethereum fails to overcome the $2,260 resistance, it could start a new decline. Initial support on the downside is near the $2200 level.
The first key support could be the $2,180 area. A break down and close below $2,180 could trigger further bearish moves. In the given case, Ether could revisit the $2,120 support. Any further losses could send the price towards the $2,050 level.
Technical Indicators
MACD hourly – The MACD for eth/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for eth/USD is now below the 50 level.
Main Support Level: $2,180
Main Resistance Level: $2260
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