Ethereum has started to drop significantly from the $2700 area against the US Dollar. ETH fell below $2,550 and could accelerate below the $2,420 support.
- Ethereum started to drop significantly after it failed to cross $2,700.
- The price is now trading below $2,550 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $2,490 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could drop further if there is a close below the $2,420 support area.
Ethereum price takes a hit
Ethereum struggled to stabilize above Resistance $2700. ETH rose near the $2700 level and started a new low. There was a sharp move below the $2,620 and $2,550 levels.
The bears even pushed the price below the $2,500 level and 100-hour simple moving average. The bottom formed near $2,422 and the price is now consolidating losses. On the upside, we see initial resistance near the $2,485 level.
There is also a major bearish trend line forming with resistance near $2,490 on the hourly chart of ETH/USD. The trend line is near the 23.6% Fib retracement level of the recent decline from the $2,703 swing high to $2,422 low.
The first major resistance is near the $2,565 level. It is close to the 50% Fib retracement level of the recent decline from the $2,703 swing high to $2,422 low. The main breakout area is now near the $2650 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
A close above the $2,650 level may open the door for a decent increase. In the mentioned case, the price of Ether may rise towards the $2,700 resistance.
More losses in ETH?
If Ethereum fails to rise above the $2,565 resistance, it may continue to decline. There is initial support on the downside near the $2,420 region.
The next major support is near the $2,400 level. If there is a downside break below $2,400 and the recent low, the price of Ether may accelerate lower. In this case, it could drop below the $2,350 level.
MACD per hour – ETH/USD’s MACD is moving into bearish territory.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Key Support Level – $2400
Key Resistance Level – $2,565