Ethereum failed to surpass $2,780 and corrected lower against the US Dollar. ETH price must stay above $2,570 to start a fresh increase in the near term.
Ethereum struggled to clear the $2,780 zone and corrected gains.
The price is now trading below $2,650 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $2,660 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend decline if it fails to stay above $2,570 and $2,550.
Ethereum Price Corrects Lower
Ethereum extended increase above the $2,700 level. ETH even cleared the $2,750 resistance level, but it faced a strong resistance near $2,780.
A high was formed near $2,775 and the price started a downside correction. There was a break below the $2,700 and $2,650 levels. Ether price settled below $2,650 and the 100 hourly simple moving average. The price declined below the 50% Fib retracement level of the upward move from the $2,445 swing low to $2,775 high.
Besides, there was a break below a key bullish trend line with support near $2,660 on the hourly chart of ETH/USD. The pair is now approaching the $2,570 support zone. It is near the 61.8% Fib retracement level of the upward move from the $2,445 swing low to $2,775 high.
If ether price stays above the $2,570 support, it could start a fresh increase. On the upside, an initial resistance is near the $2,620 zone.
The first major resistance is seen near the $2,650 level and the 100 hourly simple moving average. The next major resistance is near the $2,780 level, above which the price could accelerate higher. In the stated case, the price might rise towards the $2,880 level.
More Losses in ETH?
If ethereum fails to start a fresh increase above the $2,650 level, it could continue to move down. An initial support on the downside is near the $2,570 level.
The next major support is near the $2,550 level. A close below the $2,570 and $2,550 support levels might push the price further lower. In the stated case, the price could revisit $2,445.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $2,570
Major Resistance Level – $2,650