Ethereum Price Recovery Runs Into A Wall, Decline Risk Returns

[Ben Graham]

Ethereum price extended its decline below $2,220 and $2,200. ETH is now attempting to recover from $2,000 but faces many hurdles near $2,250.

• Ethereum failed to stay above $2,300 and started a fresh decline.
• The price is trading below $2,265 and the 100-hourly Simple Moving Average.
• There is a major bearish trend line forming with resistance at $2,250 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh decline if it stays below the $2,350 zone.

Ethereum Price Faces Resistance

Ethereum price failed to remain stable above $2,320 and extended losses, like Bitcoin. ETH price traded below $2,220 to enter a bearish zone.

The bears even pushed the price below $2,200. A low was formed at $2,107 and the price is now attempting to recover. There was a move above $2,220. The price tested the 23.6% Fib retracement level of the downward move from the $3,040 swing high to the $2,107 low.

However, the bears are active near $2,265. There is also a major bearish trend line forming with resistance at $2,250 on the hourly chart of ETH/USD. Ethereum price is now trading below $2,265 and the 100-hourly Simple Moving Average.

If the bulls remain in action above $2,175, the price could attempt another increase. Immediate resistance is seen near the $2,250 level. The first key resistance is near the $2,265 level. The next major resistance is near the $2,460 level. A clear move above the $2,460 resistance might send the price toward the $2,575 resistance or the 50% Fib retracement level of the downward move from the $3,040 swing high to the $2,107 low.

An upside break above the $2,575 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,680 resistance zone or even $2,700 in the near term.

Another Drop In ETH?

If Ethereum fails to clear the $2,265 resistance, it could start a fresh decline. Initial support on the downside is near the $2,200 level. The first major support sits near the $2,175 zone.

A clear move below the $2,175 support might push the price toward the $2,120 support. Any more losses might send the price toward the $2,050 region. The main support could be $2,000.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,175

Major Resistance Level – $2,265