Ethereum Price Shows Weakness, Eyes Key Support as Bears Loom

[Redator]

Ethereum price attempted a fresh increase above $2,600. ETH is now trimming gains and might struggle to stay above the $2,500 support.

• Ethereum started a fresh decline below the $2,600 level.
• The price is trading below $2,575 and the 100-hourly Simple Moving Average.
• There is a bullish trend line forming with support at $2,525 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it stays above the $2,500 zone in the near term.

Ethereum Price Corrects Gains

Ethereum price found support near $2,440 and started a recovery wave, like Bitcoin. ETH price recovered above the $2,500 and $2,550 resistance levels.

The price even spiked above the $2,620 resistance. There was a move above the 23.6% Fib retracement level of the downward move from the $2,880 swing high to the $2,440 low. However, the bears remained active near the $2,660 resistance zone.

The bears defended the 50% Fib retracement level of the downward move from the $2,880 swing high to the $2,440 low. The price is again moving lower below $2,600. Ethereum price is now trading below $2,575 and the 100-hourly Simple Moving Average.

Besides, there is a bullish trend line forming with support at $2,525 on the hourly chart of ETH/USD. On the upside, the price could face resistance near the $2,620 level. The next key resistance is near the $2,640 level. The first major resistance is near the $2,660 level.

A clear move above the $2,660 resistance might send the price toward the $2,720 resistance. An upside break above the $2,720 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,800 resistance zone or even $2,880 in the near term.

More Losses In ETH?

If Ethereum fails to clear the $2,660 resistance, it could start a fresh decline. Initial support on the downside is near the $2,540 level. The first major support sits near the $2,525 zone and the trend line.

A clear move below the $2,525 support might push the price toward the $2,500 support. Any more losses might send the price toward the $2,440 support level in the near term. The next key support sits at $2,350.

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 – $2,500

Major Resistance Level – $2,660