Ethereum Price Upside Stalls, Another Decline Could Be Brewing

Ethereum price started a fresh decline and traded below $2,350. $ETH is now consolidating above $2,285 and might struggle to recover.

• Ethereum started a downside correction from the $2,425 zone.
• The price is trading below $2,365 and the 100-hourly Simple Moving Average.
• There was a break below a bullish trend line with support at $2,340 on the hourly chart of $ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it stays above the $2,255 zone.

Ethereum Price Trims Gains

Ethereum price failed to remain stable above $2,385 and started a downside correction, underperforming Bitcoin. $ETH price dipped below the $2,365 and $2,350 levels.

There was a break below a bullish trend line with support at $2,340 on the hourly chart of $ETH/USD. The pair traded as low as $2,286 and is currently consolidating losses. There was a minor move above the 23.6% Fib retracement level of the downward move from the $2,423 swing high to the $2,286 low.

Ethereum price is now trading below $2,365 and the 100-hourly Simple Moving Average. If the bulls remain in action above $2,285, the price could attempt another increase. Immediate resistance is seen near the $2,355 level and the 50% Fib retracement level of the downward move from the $2,423 swing high to the $2,286 low.

The first key resistance is near the $2,385 level. The next major resistance is near the $2,425 level. A clear move above the $2,425 resistance might send the price toward the $2,450 resistance. An upside break above the $2,450 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,510 resistance zone or even $2,550 in the near term.

More Losses In $ETH?

If Ethereum fails to clear the $2,385 resistance, it could start a fresh decline. Initial support on the downside is near the $2,285 level. The first major support sits near the $2,255 zone.

A clear move below the $2,255 support might push the price toward the $2,200 support. Any more losses might send the price toward the $2,150 region. The main support could be $2,120.

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 – $2,255

Major Resistance Level – $2,425