Ethereum Price Weakens: Can It Defend the $2,500 Level?

Ethereum price started a downside correction from the $2,700 zone. ETH is now consolidating and struggling to stay above the $2,500 support.

  • Ethereum started a downside correction below the $2,650 and $2,620 levels.
  • The price is trading below $2,650 and the 100-hourly Simple Moving Average.
  • There was a break below a connecting bullish trend line with support at $2,620 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could rise again if it stays above the $2,550 support zone.

Ethereum Price Trims Gains And Revisit $2,550

Ethereum price struggled to extend gains above the $2,700 resistance zone. ETH started a downside correction below the $2,650 level like Bitcoin. There was a move below the $2,620 and $2,600 levels.

The price declined below the 23.6% Fib retracement level of the upward move from the $2,311 swing low to the $2,722 high. Besides, there was a break below a connecting bullish trend line with support at $2,620 on the hourly chart of ETH/USD.

Ethereum price is now trading below $2,650 and the 100-hourly Simple Moving Average. However, the bulls are trying to protect more downsides below the $2,500 support zone.

If there is another increase, the price might face hurdles near the $2,600 level and the 100-hourly Simple Moving Average. The first major resistance is near the $2,625 level. A close above the $2,625 level might send Ether toward the $2,700 resistance.

Ethereum Price

The next key resistance is near $2,720. An upside break above the $2,720 resistance might send the price higher toward the $2,880 resistance zone in the near term.

More Downsides In ETH?

If Ethereum fails to clear the $2,625 resistance, it could continue to move down. Initial support on the downside is near $2,520 and the 50% Fib retracement level of the upward move from the $2,311 swing low to the $2,722 high. The first major support sits near the $2,500 zone.

A clear move below the $2,500 support might push the price toward $2,450. Any more losses might send the price toward the $2,320 support level in the near term. The next key support sits at $2,250.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,500

Major Resistance Level – $2,625

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