Ethereum started a downside correction from the $2,400 zone against the US Dollar. ETH price could start a fresh increase unless there is a clear break below $2,150.
Ethereum failed to surpass $2,400 and it started a downside correction.
The price is now trading just above $2,200 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $2,280 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could decline heavily if there is a break below the $2,200 and $2,150 support levels in the near term.
Ethereum Price Consolidates
After a failed attempt to clear the $2,400 level, ethereum started a fresh decline. ETH broke the $2,300 and $2,250 support levels to move into a short-term bearish zone.
The price even spiked below the $2,200 level and the 100 hourly simple moving average. It traded below the 50% Fib retracement level of the upward move from the $2,020 swing low to $2,389 high. There was also a break below a key bullish trend line with support near $2,280 on the hourly chart of ETH/USD.
Ether is now trading just above $2,200 and the 100 hourly simple moving average. An immediate support on the downside is near the $2,210 level. The first major support is near the $2,200 level.
There is also a short-term contracting triangle forming with support near $2,200. The next major support is near the $2,160 level. It is near the 61.8% Fib retracement level of the upward move from the $2,020 swing low to $2,389 high.
If there is a clear break below $2,160, the price could decline heavily. In the stated case, the price could dive towards the $2,000 level. The next major support on the downside is near the $1,880 level.
Fresh Increase in ETH?
If Ethereum stays above the $2,200 support zone or $2,160, it could start a fresh increase. An immediate resistance on the upside is near the $2,250 level.
The main breakout resistance is now forming near the $2,300 and $2,320 levels. A close above the $2,320 level could start a major increase towards the $2,400 level or even $2,550 in the coming sessions.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently above the 50 level.
Major Support Level – $2,160
Major Resistance Level – $2,320
