Home CryptocurrencyAnalysis Ethereum Price Turns Red: Is This a Temporary Dip?

Ethereum Price Turns Red: Is This a Temporary Dip?

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Ethereum price started a fresh decline below the $2,550 support. ETH is struggling and might recover if it clears the $2,500 resistance zone.

  • Ethereum started a fresh decline from the $2,650 resistance zone.
  • The price is trading below $2,500 and the 100-hourly Simple Moving Average.
  • There was a break above a connecting bearish trend line with resistance at $2,450 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a recovery wave if it surpasses the $2,500 and $2,550 resistance levels.

Ethereum Price Takes Hit

Ethereum price struggled to stay above $2,550 and started a fresh decline like Bitcoin. ETH declined below the $2,520 and $2,500 levels.

It tested the $2,420 support zone. A low was formed at $2,411 and the price is now attempting to recover. There was a move above the $2,450 resistance zone. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,582 swing high to the $2,411 low.

Besides, there was a break above a connecting bearish trend line with resistance at $2,450 on the hourly chart of ETH/USD. Ethereum price is now trading below $2,500 and the 100-hourly Simple Moving Average.

On the upside, the price seems to be facing hurdles near the $2,500 level and the 50% Fib retracement level of the downward move from the $2,582 swing high to the $2,411 low. The first major resistance is near the $2,520 level. The main resistance is now forming near $2,550.

Ethereum Price

A clear move above the $2,550 resistance might send the price toward the $2,600 resistance. An upside break above the $2,600 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,650 resistance zone.

Another Decline In ETH?

If Ethereum fails to clear the $2,500 resistance, it could start another decline. Initial support on the downside is near the $2,450 level. The first major support sits near the $2,400 zone.

A clear move below the $2,400 support might push the price toward $2,350. Any more losses might send the price toward the $2,320 support level in the near term. The next key support sits at $2,250.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 zone.

Major Support Level – $2,420

Major Resistance Level – $2,500

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