Ethereum corrected gains from the $2,640 area against the US Dollar. ETH price is now trading above key support levels at $2,500 and the 100 hourly SMA.
- Ethereum failed to clear $2,650 and started a downside correction.
- The price is now trading above $2,500 and the 100 hourly simple moving average.
- There is a major downside channel forming with resistance near $2,550 on the hourly chart of ETH/USD (data feed via Kraken).
- As long as it is above the $2,500 level, the pair could start a fresh rise.
Ethereum Price Holding Key Support
Ethereum gained momentum above the $2,600 resistance and stepped up. However, ETH failed to cross the $2,650 resistance area. A high was formed near $2,638 before starting a downside correction.
There was a break below the $2,600 and $2,550 support levels. Ether price declined below the 50% Fib retracement level of the recent rise from the $2,461 low to $2,638 high. The price is also trading below the $2,520 support level.
It is now trading above $2,500 and 100 hourly simple moving average. It is increasing the 76.4% Fib retracement level of the recent move from the $2,461 low to $2,638 high.
Source: ETHUSD on TradingView.com
There is also a major downside channel forming with resistance near $2,550 on the hourly chart of ETH/USD. There is a clear upside break above the channel resistance and a fresh rally could start at $2,550. The next major resistance is near the $2,600 level. The main resistance is still near the $2,640 and $2,650 levels. Any further gains could open the door for further gains towards $2,750.
Downside Break in ETH?
If Ethereum fails to clear the $2,550 and $2,600 resistance levels, it could continue to move lower. An initial support on the downside is near the $2,510 level.
The first major support is near the $2,500 level and the 100 hourly SMA. A break below the 100 hourly SMA could push Ether price towards the $2,450 support area. Any further losses could clear the way for a decline towards the $2,400 level in the near term.
hourly macd – The MACD for ETH/USD is now losing momentum in the bearish zone.
hourly rsi – The RSI for ETH/USD is currently near the 50 level.
Key Support Level – $2,500
Key Resistance Level – $2,550