TA: Ethereum Below This Support Could Spark Another Sharp Decline
Ethereum failed to clear $2,800 and corrected gains against the US Dollar. ETH price must stay above the $2,600 support to avoid more downsides.
Ethereum started a downside correction after it failed to surpass the $2,800 resistance.
The price is now trading near $2,650 and the 100 hourly simple moving average.
There is a crucial bullish trend line forming with support near $2,645 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a major decline if there is a move below $2,645 and $2,600.
Ethereum Price Dips
Ethereum made another attempt to clear the $2,800 resistance zone. ETH formed a high near $2,814 and started a fresh decline. There was a clear move below the $2,750 support level.
The price even spiked below the 50% Fib retracement level of the upward move from the $2,478 swing low to $2,815 high. It is now trading near $2,650 and the 100 hourly simple moving average. Besides, there was a test of the key $2,600 support level.
Ether price stayed above the 61.8% Fib retracement level of the upward move from the $2,478 swing low to $2,815 high. There is also a crucial bullish trend line forming with support near $2,645 on the hourly chart of ETH/USD.
An immediate resistance on the upside is near the $2,700 level. The first major resistance is near the $2,750 level. The main resistance for a larger increase is near the $2,800 level. A convincing move above the $2,800 resistance could stage a strong upward move.
Source: ETHUSD on TradingView.com
The next key resistance is near the $2,920 level, above which ether price might rise towards the $3,000 resistance zone in the near term.
Downside Break in ETH?
If ethereum fails to start a fresh increase above the $2,750 resistance, it could extend decline. An initial support on the downside is near the $2,645 level and the trend line.
A downside break below the trend line support may even push the price below the $2,600 support zone. The next major support is near the $2,500 level, where the bulls might take stand. If they fail, the price could slide to $2,400.
Hourly MACD – The MACD for ETH/USD is losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $2,600
Major Resistance Level – $2,750