Ethereum Price Action Turns Bearish — Risk of Near-Term Correction

Ethereum price started a fresh increase above the $2,450 zone. ETH is now correcting gains from $2,520 and might slip to test the $2,320 zone.

• Ethereum started a fresh upward move above the $2,350 level.
• The price is trading above $2,400 and the 100-hourly Simple Moving Average.
• There was a break below a connecting bullish trend line with support at $2,450 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it remains stable above the $2,320 zone in the near term.

Ethereum price started a fresh increase above the $2,320 support level, like Bitcoin. ETH price was able to clear the $2,350 and $2,450 resistance levels to move into a positive zone.

The bulls even pushed the price above the 76.4% Fib retracement level of the downward move from the $2,569 swing high to the $2,115 low. However, the bulls were active above the $2,500 level. A high was formed at $2,520 and the price is now correcting some gains.

There was a move below the 23.6% Fib retracement level of the upward move from the $2,114 swing low to the $2,520 high. Besides, there was a break below a connecting bullish trend line with support at $2,450 on the hourly chart of ETH/USD.

Ethereum price is now trading above $2,400 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance near the $2,500 level. The next key resistance is near the $2,520 level.

The first major resistance is near the $2,550 level. A clear move above the $2,550 resistance might send the price toward the $2,600 resistance. An upside break above the $2,600 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,720 resistance zone or even $2,800 in the near term.

If Ethereum fails to clear the $2,520 resistance, it could start a fresh decline. Initial support on the downside is near the $2,400 level. The first major support sits near the $2,320 zone.

A clear move below the $2,320 support might push the price toward the $2,250 support. Any more losses might send the price toward the $2,200 support level in the near term. The next key support sits at $2,150.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

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

Major Support Level – $2,320

Major Resistance Level – $2,520