Cryptocurrency News

Ethereum Topside Bias Weak, Could Trigger Sharp Downtrend


Ethereum started a fresh decline with the $2,850 resistance against the US Dollar. ETH price is down more than 5% and it is struggling to stay above $2,420.

  • Ethereum declined sharply after there was a clear break below the $2,650 support.
  • The price is now well below $2,650 and the 100 hourly simple moving average.
  • There was a break below a major ascending channel with support near $2,760 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to continue a downside rally unless there is a strong recovery above $2,550 and $2,650.

Ethereum price breaks key support

Ethereum attempted a big upside break Above the $2,800 level. However, ETH failed to clear the $2,850 level and a fresh decline started.

There was a break below a major ascending channel with support near $2,760 on the hourly chart of ETH/USD. The pair declined sharply below the $2,650 support and it settled . came far below 100 hourly simple moving average.

Ether gained bearish momentum and it even broke the key $2,550 support area. There was an increase below $2,450 but the price remained stable above the $2,420 support. A lower level is formed near $2,433 and the price is now consolidating losses.

Source: ETHUSD on TradingView.com

An initial resistance on the upside is near the $2,520 level. There is also a 23.6% Fib retracement level of the 23.6% Fib retracement level of the decline from the $2,849 high to $2,433 low near $2,530 high.

The first major resistance is near the $2,550 level. The main resistance is now forming near the $2,650 level. It is near the 50% Fib retracement level of the recent decline from the $2,849 high to $2,433 low. A clear upside break above the $2,650 level could set the pace for a sustained rise.

More losses in ETH?

If Ethereum fails to clear the $2,550 and $2,650 resistance levels, it could extend its decline. An initial support on the downside is near the $2,450 level.

The first major support is near the $2,420 level. A break below $2,420 could open the doors for a bigger decline. The next major support is near the $2,200 area, where the bulls are likely to take a stand.

technical indicators

hourly macdThe MACD for ETH/USD is now gaining momentum in the bearish zone.

hourly rsiThe RSI for ETH/USD is currently below the 30 level.

Key Support Level – $2,420

Key Resistance Level – $2,550



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