Ethereum Topside Bias Vulnerable, What Could Trigger Sharp Decline

-

- Advertisment -

Ethereum started a fresh decline from the $2,850 resistance against the US Dollar. ETH price is down over 5% and it is struggling to stay above $2,420.

  • Ethereum declined sharply after there was a clear break below the $2,650 support.
  • The price is now well below $2,650 and the 100 hourly simple moving average.
  • There was a break below a key rising channel with support near $2,760 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move down unless there is a strong recovery above $2,550 and $2,650.

Ethereum Price Breaks Key Support

Ethereum attempted a major upside break above the $2,800 level. However, ETH failed to clear the $2,850 level and started a fresh decline.

There was a break below a key rising channel with support near $2,760 on the hourly chart of ETH/USD. The pair declined sharply below the $2,650 support and it settled well below the 100 hourly simple moving average.

Ether gained bearish momentum and it even broke the key $2,550 support zone. There was a spike below $2,450, but the price remained stable above the $2,420 support. A low is formed near $2,433 and the price is now consolidating losses.

Source: ETHUSD on TradingView.com

An initial resistance on the upside is near the $2,520 level. The 23.6% Fib retracement level of the of the recent decline from the $2,849 high to $2,433 low is also near $2,530.

The first major resistance is near the $2,550 level. The main resistance is now forming near $2,650. It is close to the 50% Fib retracement level of the of the recent decline from the $2,849 high to $2,433 low. A clear upside break above the $2,650 level could set the pace for a steady increase.

More Losses in ETH?

If Ethereum fails to clear the $2,550 and $2,650 resistance levels, it could extend its decline. An initial support on the downside is near the $2,450 level.

The first major support is near the $2,420 level. A downside break below $2,420 could open the doors for a larger decline. The next major support is near the $2,200 zone, where the bulls are likely to take a stand.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is currently below the 30 level.

Major Support Level – $2,420

Major Resistance Level – $2,550

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. AllStocksNews.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Stephen Phillips
He is a complete nerd and a graduate of computer science. He talks about cryptocurrency and blockchain.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Latest News

Manchin would ban gerrymandering … if he could find 10 Republicans to join him

Campaign Action Maybe this will be the straw that breaks the camel’s back and Manchin will admit, in deep sorrow,...

July 4 celebrations could be hit by shortage

Another possible shortage might mean the sky isn't as bright this Independence Day.Weeks ahead of July 4th festivities, Phantom...

Jada Pinkett Smith Shares Tupac Poem For His 50th Birthday

Image Source: Getty / Kevin.Mazur/INACTIVE Jada Pinkett Smith is remembering Tupac Shakur on what would have been his 50th birthday...
- Advertisment -