TA: Ethereum (ETH) Turns Red, What Could Trigger Additional Losses
Ethereum failed to recover above the $2,500 resistance against the US Dollar. ETH price could accelerate its decline if it fails to stay above the $2,440 support.
- Ethereum traded below the $2,550 and $2,500 support levels.
- The price is now trading just below $2,500 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $2,580 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue lower below the $2,440 support zone in the near term.
Ethereum Price Could Extend Losses
Ethereum started a fresh decline from well above $2,600. ETH price broke the key $2,550 support level, similar to bitcoin near $40,000. The price even broke the $2,500 support level to enter a short-term bearish zone.
The price is now trading just below $2,500 and the 100 hourly simple moving average. The recent low was formed near $2,444 before the price attempted a minor upside correction.
There was a break above the $2,500 level. Ether recovered above the 23.6% Fib retracement level of the recent decline from the $2,668 swing low to $2,444 low. However, the bears were active near the $2,550 resistance zone.
The next key resistance is near the $2,555 level. It is close to the 50% Fib retracement level of the recent decline from the $2,668 swing low to $2,444 low. There is also a key bearish trend line forming with resistance near $2,580 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
A clear break and close above the $2,550 and $2,580 resistance levels might start a decent increase. In the stated case, the price could revisit the $2,700 level.
More Losses in ETH?
If ethereum fails to recover above the $2,550 and $2,580 resistance levels, it could extend its decline. An immediate support on the downside is near the $2,465 level.
The next major support is near the $2,440 level. A clear downside break below the $2,440 support level might accelerate losses. In the stated case, the price could easily test $2,400. The next major support could be near the $2,330 level, where the bulls might take a stand.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $2,440
Major Resistance Level – $2,550