TA: Ethereum Tops Near $2,400, Indicators Point Another Bearish Wave
Ethereum started a fresh decline after it failed to surpass $2,400 against the US Dollar. ETH price could decline further if it fails to stay above the $2,250 support.
Ethereum is slowly moving lower below the $2,300 support zone.
The price is now trading below the $2,280 support and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $2,285 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to move down if it fails to stay above the $2,250 support zone.
Ethereum Price Could Decline Further
There was an upside extension in ethereum above the $2,300 level. ETH even broke the $2,350 level and it settled above the 100 hourly simple moving average.
However, the price faced a strong resistance near the $2,400 level. A high was formed near $2,406 and the price started a fresh decline. It broke the $2,320 and $2,300 support levels. There was a break below the 50% Fib retracement level of the upward move from the $2,156 swing low to $2,406 high.
There was also a a break below a major bullish trend line with support near $2,285 on the hourly chart of ETH/USD. The pair is now trading below the $2,280 support and the 100 hourly simple moving average..
Source: ETHUSD on TradingView.com
An immediate support is near the $2,250 level. It is near the 61.8% Fib retracement level of the upward move from the $2,156 swing low to $2,406 high. If there is a downside break below the $2,250 support zone, there is a risk of a sharp decline. The next major support is near the $2,150 level.
Upsides Limited in ETH?
If Ethereum stays above the $2,250 support, it could correct higher in the near term. An initial resistance is near the $2,280 level and the 100 hourly simple moving average.
The first key resistance could be $2,300. The next major resistance is near the $2,350 level. Any more gains could lead the price towards the $2,400 level, above which the bulls are likely to aim a larger increase.
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Major Support Level – $2,250
Major Resistance Level – $2,350