From the $2,400 level, Ethereum began a downward reversal versus the US Dollar. Unless there is a definite breach below $2,150, the price of Ethereum may begin to rise again.
- After failing to break through $2,400, Ethereum began a downward trend.
- The price is currently hovering between $2,200 and the 100 hourly simple moving average.
- On the hourly chart of ETH/USD, there was a breach below a significant bullish trend line with support at $2,280. (data feed via Kraken).
- If the pair breaks below the $2,200 and $2,150 support levels in the short future, it might fall sharply.
The price of Ethereum is Leveling off.
Following an unsuccessful effort to break through the $2,400 mark, ethereum has begun a new downward trend. ETH has moved into a short-term bearish zone after breaking the $2,300 and $2,250 support levels.
Even below the $2,200 mark and the 100 hourly simple moving average, the price dropped. It traded below the 50% Fib retracement level of the upward advance from the swing low of $2,020 to the high of $2,389. On the hourly chart of ETH/USD, there was also a breach below a major bullish trend line with support at $2,280.
Ether is now trading slightly above the $2,200 mark, as well as the 100 hourly simple moving average. Near the $2,210 level, there is immediate support on the downside. Near the $2,200 level, the first big support is found.
A short-term contracting triangle with support at $2,200 is also emerging. Near the $2,160 level, the next significant support is found. The upward advance from the $2,020 swing low to the $2,389 high is nearing the 61.8 percent Fib retracement level.
The price might fall sharply if there is a definite breach below $2,160. In the above scenario, the price might drop to $2,000 or below. On the downside, the next significant support is at $1,880.
Is there a new increase in ETH?
Ethereum may start a new uptrend if it holds above the $2,200 support zone or $2,160. Near the $2,250 mark, there is immediate upward resistance.
Near the $2,300 and $2,320 levels, the primary breakout resistance is already developing. A closing over $2,320 may signal the start of a strong rally towards $2,400 or perhaps $2,550 in the following sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently above the 50 level.
Major Support Level – $2,160
Major Resistance Level – $2,320
