Ethereum Price Trims Gains: Is the Rally Losing Steam?

Ethereum price is correcting gains from the $2,720 resistance. ETH is now trading below $2,650 and might find bids near the $2,600 level.

• Ethereum started a downside correction from the $2,720 zone.
• The price is trading below $2,650 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $2,650 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must stay above the $2,600 support to start a fresh increase in the near term.

Ethereum price extended gains and traded above the $2,650 level. ETH even cleared the $2,700 level before the bears appeared. A high was formed at $2,728 and the price started a downside correction like Bitcoin.

There was a move below the $2,700 and $2,650 levels. The price traded below the 50% Fib retracement level of the upward move from the $2,554 swing low to the $2,728 high. Ethereum price is now trading below $2,650 and the 100-hourly Simple Moving Average.

However, the price could find bids near the $2,600 level or the 76.4% Fib retracement level of the upward move from the $2,554 swing low to the $2,728 high.

On the upside, the price seems to be facing hurdles near the $2,650 level. There is also a key bearish trend line forming with resistance at $2,650 on the hourly chart of ETH/USD. The first major resistance is near the $2,685 level. The next key resistance is near $2,720.

An upside break above the $2,720 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,840 resistance zone in the near term. The next hurdle sits near the $2,880 level or $2,920.

If Ethereum fails to clear the $2,650 resistance, it could continue to move down. Initial support on the downside is near the $2,600 level. The first major support sits near the $2,550 zone.

A clear move below the $2,550 support might push the price toward $2,520. Any more losses might send the price toward the $2,450 support level in the near term. The next key support sits at $2,365.

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 – $2,600

Major Resistance Level – $2,650