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TA: Ethereum Could Avoid a Major Downtrend if it Closes Above One Key Level

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Ethereum extended decline below the $2,500 support zone against the US Dollar. ETH price is recovering, but it must clear $2,680 to start a decent increase.

  • Ethereum extended decline below the $2,500 support before correcting higher.
  • The price is now trading below $2,600 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $2,600 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a steady recovery wave if it clears $2,600 and $2,680.

Ethereum Price Faces Hurdle

Ethereum remained in a bearish zone below the $2,650 level. ETH even extended decline below the $2,500 support level and settled below the 100 hourly simple moving average.

A low was formed near $2,445 and the price is now correcting losses. There was a move above the $2,500 resistance level. Ether price even spiked above the 50% Fib retracement level of the recent decline from the $2,648 swing high to $2,445 low.

However, the bears remained active near the $2,570 level. It is near the 61.8% Fib retracement level of the recent decline from the $2,648 swing high to $2,445 low.

The first major resistance is seen near the $2,600 level (the recent breakdown zone). There is also a key bearish trend line forming with resistance near $2,600 on the hourly chart of ETH/USD. The next major resistance might be near the 100 hourly simple moving average and the $2,680 level.

Ethereum Price

Source: ETHUSD on TradingView.com

A close above the 100 hourly SMA and then $2,680 might start a steady increase. In the stated case, the price might rise towards $2,800 or even $2,880.

More Downsides in ETH?

If ethereum fails to start a fresh increase above the $2,600 level, it could start another decline. An initial support on the downside is near the $2,500 level.

The next major support is near the $2,445 low, below which the price might gain bearish momentum. In the stated case, ether price could decline towards the $2,400 support zone. Any more losses might call for a move towards the $2,300 level in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining pace in the bullish zone.

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

Major Support Level – $2,500

Major Resistance Level – $2,680

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