Ethereum Price Faces Downward Pressure — More Pain Before a Bounce?

Ethereum price started a fresh decline below the $2,620 zone. ETH is now consolidating losses and remains at risk of more losses below $2,500.

• Ethereum started a fresh decline below the $2,600 level.
• The price is trading below $2,540 and the 100-hourly Simple Moving Average.
• There is a rising channel forming with support at $2,480 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it clears the $2,565 resistance zone in the near term.

Ethereum price started a fresh decline below the $2,620 pivot level, like Bitcoin. ETH price declined below the $2,600 and $2,550 levels.

The bears even pushed the price below the $2,500 level. The pair tested the $2,450 zone and started a consolidation phase. There was a minor move above the $2,500 level. The price climbed above the 23.6% Fib retracement level of the downward wave from the $2,680 swing high to the $2,455 low.

Ethereum price is now trading below $2,550 and the 100-hourly Simple Moving Average. Besides, there is a rising channel forming with support at $2,480 on the hourly chart of ETH/USD.

On the upside, the price could face resistance near the $2,540 level. The next key resistance is near the $2,565 level. It is close to the 50% Fib retracement level of the downward wave from the $2,680 swing high to the $2,455 low. The first major resistance is near the $2,625 level.

A clear move above the $2,625 resistance might send the price toward the $2,680 resistance. An upside break above the $2,680 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,800 resistance zone or even $2,880 in the near term.

If Ethereum fails to clear the $2,540 resistance, it could start a fresh decline. Initial support on the downside is near the $2,480 level. The first major support sits near the $2,450 zone.

A clear move below the $2,450 support might push the price toward the $2,320 support. Any more losses might send the price toward the $2,240 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 bearish zone.

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

Major Support Level – $2,450

Major Resistance Level – $2,540