Ethereum Price Faces Renewed Pressure—Is a Breakdown Imminent?

Ethereum price is moving lower from the $2,800 zone. ETH might gain bearish momentum if it dips below the $2,650 support zone.

• Ethereum started a fresh decline below the $2,720 level.
• The price is trading below $2,700 and the 100-hourly Simple Moving Average.
• There was a break below a key bullish trend line with support at $2,680 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a decent upward move if it settles above $2,700 and $2,720.

Ethereum price attempted a fresh increase above the $2,650 level, like Bitcoin. ETH broke the $2,720 resistance but it failed to clear the $2,800 resistance zone.

A high was formed at $2,791 and the price started a fresh decline. There was a move below the $2,750 and $2,720 support levels. The price dipped below the 50% Fib retracement level of the upward move from the $2,614 swing low to the $2,791 high.

There was also a break below a key bullish trend line with support at $2,680 on the hourly chart of ETH/USD. Ethereum price is now trading below $2,700 and the 100-hourly Simple Moving Average.

However, it is now finding bids near the 76.4% Fib retracement level of the upward move from the $2,614 swing low to the $2,791 high. On the upside, the price seems to be facing hurdles near the $2,680 level. The first major resistance is near the $2,720 level.

The main resistance is now forming near $2,780 or $2,800. A clear move above the $2,800 resistance might send the price toward the $2,880 resistance. An upside break above the $2,880 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,000 resistance zone or even $3,050 in the near term.

If Ethereum fails to clear the $2,720 resistance, it could start another decline. Initial support on the downside is near the $2,655 level. The first major support sits near the $2,615 zone.

A clear move below the $2,615 support might push the price toward the $2,550 support. Any more losses might send the price toward the $2,500 support level in the near term. The next key support sits at $2,440.

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 – $2,650

Major Resistance Level – $2,720