Ethereum extended decline below the $2,650 support zone against the US Dollar. ETH price is struggling and there is a risk of a move below $2,500.
Ethereum started a fresh decline from well above the $2,800 pivot zone.
The price is now trading below $2,600 and the 100 hourly simple moving average.
There is a connecting bearish trend line forming with resistance near $2,620 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend decline below $2,500 if it fails to recover above the $2,650 resistance.
Ethereum Price Extends Decline
Ethereum failed to start a fresh increase above the $2,800 resistance level. ETH started another decline and traded below the key $2,650 support zone.
The bears took control and were able to push the price below $2,550. Ether tested the $2,500 support and settled below the 100 hourly simple moving average. A low is formed near $2,508 and the price is now consolidating losses.
On the upside, an initial resistance is near the $2,550 level. It is near the 23.6% Fib retracement level of the recent decline from the $2,684 swing high to $2,508 low.
The first major resistance is seen near the $2,600 level (the recent breakdown zone). It is close to the 50% Fib retracement level of the recent decline from the $2,684 swing high to $2,508 low. There is also a connecting bearish trend line forming with resistance near $2,620 on the hourly chart of ETH/USD.
The next major resistance might be near the $2,650 level and the 100 hourly simple moving average. Any more gains could send the price towards the $2,800 resistance zone in the near term.
More Downsides in ETH?
If ethereum fails to start a fresh increase above the $2,650 level, it could extend decline. An initial support on the downside is near the $2,510 level.
The next major support is near the $2,500 level, below which the price might gain bearish momentum. In the stated case, ether price could even revisit the $2,400 support zone. Any more losses might call for a move towards the $2,300 level in the near term.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 40 level.
Major Support Level – $2,500
Major Resistance Level – $2,650
