Ethereum corrected gains from the $ 2,640 zone against the US dollar. ETH price is now trading above an important support at USD 2,500 and the 100 hour SMA.
- Ethereum failed to clear $ 2,650 and began a downward correction.
- The price is now trading above $ 2,500 and the 100-hour simple moving average.
- A major bearish channel is forming on the hourly chart of ETH / USD (data feed via Kraken) with resistance near USD 2,550.
- The pair is likely to start a fresh spike as long as it stays above the $ 2,500 mark.
Ethereum Price Holding Key Support
Ethereum gained pace above the USD 2,600 resistance and extended its upward move. However, ETH failed to overcome the $ 2,650 resistance. A high was formed at $ 2,638 before a downward correction set in.
There was a break below the USD 2,600 and USD 2,550 support levels. Ether price fell below the 50% fib retracement level of the recent spike from the low of $ 2,461 to the high of $ 2,638. The price even traded below the $ 2,520 support.
It is now trading above $ 2,500 and the 100-hour simple moving average. It holds the 76.4% fib retracement level of the recent spike from the $ 2,461 low to the $ 2,638 high.
Source: ETHUSD on TradingView.com
A major bearish channel is also forming on the hourly chart of ETH / USD with resistance near USD 2,550. A clear break above the channel resistance and $ 2,550 could start a new rally. The next major resistance is near the $ 2,600 mark. The main resistance is still near $ 2,640 and $ 2,650. Further gains could open the doors for a larger move towards $ 2,750.
Disadvantage break in the ETH?
If Ethereum fails to break through the USD 2,550 and USD 2,600 resistance levels, it could go further down. Initial support on the downside is near the $ 2,510 level.
The first big support is near the $ 2,500 mark and the 100 hour SMA. A downside break below the 100-hour SMA could push ether price towards the USD 2,450 support zone. Further losses could pave the way for a decline towards the $ 2,400 mark in the short term.
Hourly MACD – The MACD for ETH / USD is now losing pace in the bearish zone.
Hourly RSI – The RSI for ETH / USD is currently near the 50 mark.
Great level of support – $ 2,500
Great resistance level – $ 2,550