Ethereum Corrects Gains, Trading Below $2,350 Level
The price of Ethereum is currently correcting its gains and trading below the $2,350 level. It is also trading below $2,320 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a key bearish trend line is forming with resistance near $2,300.
Ethereum Price Eyes Fresh Increase
Ethereum struggled to clear the $2,440 resistance zone and has started a fresh decline. It moved below the $2,350 support zone and entered a short-term bearish zone. The price closed below the $2,320 level and formed a low near $2,258. Currently, Ethereum is consolidating its losses and trading below $2,320 and the 100-hourly Simple Moving Average. There is also a key bearish trend line with resistance near $2,300.
Resistance Levels to Watch
The price of Ethereum is facing resistance near the $2,300 level and the trend line. It is also close to the 23.6% Fib retracement level of the downward move from the $2,445 swing high to the $2,258 low.
The first major resistance is near $2,350 or the 50% Fib retracement level. If there is a close above this level, it could send the price towards $2,400. The next key resistance sits at $2,440, followed by a potential rally towards the $2,550 zone.
Possible Further Losses in ETH
If Ethereum fails to clear the $2,300 resistance level, it could continue its downward movement. The initial support on the downside is around $2,250, with the first key support at the $2,240 zone. A break below $2,240 and a close below that level might trigger another major decline, potentially testing the $2,200 support. Further losses could lead to a drop towards the $2,120 level.
Technical Indicators
The MACD for ETH/USD is losing momentum in the bearish zone, indicating a potential further decline. The RSI for ETH/USD is now below the 50 level, suggesting a bearish sentiment.
Source: ETHUSD on TradingView.com
Hot Take: Ethereum Faces Resistance and Possible Decline
Ethereum is currently facing resistance near the $2,300 level and a key bearish trend line. If it fails to break through this resistance, there is a possibility of further losses. The initial support is at $2,250, but if that level is broken, Ethereum could experience a major decline towards the $2,200 and even $2,120 levels. Traders should closely monitor these resistance and support levels to make informed trading decisions.
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