Ethereum extended losses below the $2,500 level against the US Dollar. ETH even tested the $2,200 support and remains at a risk of more losses.
Ethereum remained in a bearish zone and declined below $2,300.
The price is now trading below $2,400 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $2,380 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct higher, but the bears might remain active near $2,400.
Ethereum Price Dives 10%
Ethereum remained in a bearish zone below the $2,500 pivot level. ETH traded below the $2,400 and $2,350 levels to move further into a bearish zone.
The price declined below the $2,300 level and settled below the 100 hourly simple moving average. Finally, ether tested the $2,200 support zone. A low is formed near $2,200 and the price is correcting losses. There was a move above the 23.6% Fib retracement level of the recent drop from the $2,569 swing high to $2,200 low.
On the upside, an initial resistance is seen near the $2,350 level. The first major resistance is near the $2,380 level. There is also a major bearish trend line forming with resistance near $2,380 on the hourly chart of ETH/USD.
The main resistance is now forming near the $2,400 level. It is near the 50% Fib retracement level of the recent drop from the $2,569 swing high to $2,200 low. A close above the $2,400 level could open the doors for a decent increase. In the stated case, ether price might rise towards the $2,550 resistance or the 100 hourly simple moving average.
More Losses in ETH?
If ethereum fails to recover above the $2,400 resistance, it could continue to move down. An initial support on the downside is near the $2,250 zone.
The next major support is near the $2,220 level. The main breakdown support now sits near the $2,200 level. If there is a downside break below $2,200 and the recent low, ether price might accelerate lower. In this case, it could even decline towards the $2,080 level.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is now moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is correcting losses and is near the 40 level.
Major Support Level – $2,200
Major Resistance Level – $2,400
