TA: Ethereum Turns Red, What Could Trigger Steady Recovery

Ethereum extended decline below the $2,400 support zone against the US Dollar. ETH price is recovering, but it must clear $2,550 for a steady upward move.

• Ethereum extended decline below the $2,500 and $2,400 support levels.
• The price is trading below $2,500 and the 100 hourly simple moving average.
• There is a key bearish trend line forming with resistance near $2,450 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could extend losses if it fails to recover above $2,500 and $2,550.

Ethereum started a major decline after there was a close below the $3,000 level. ETH traded below the key $2,500 support zone to move into a bearish zone.

The price even traded below the $2,400 level and settled below the 100 hourly simple moving average. Finally, it traded as low as $2,160 and currently correcting higher. There was a move above the $2,300 and $2,350 levels.

Ether price climbed above the 50% Fib retracement level of the recent decline from the $2,547 swing high to $2,160 low. An initial resistance on the upside is near the $2,420 zone. There is also a key bearish trend line forming with resistance near $2,450 on the hourly chart of ETH/USD.

The trend line is close to the 76.4% Fib retracement level of the recent decline from the $2,547 swing high to $2,160 low. The first major resistance is near the $2,500 level. The main resistance sits near the $2,550 level.

If there is an upside break above $2,550 resistance, zone, the price could start a decent recovery wave. The next major resistance is near the $2,750 level.

If ethereum fails to start a recovery wave above the $2,550 level, it could continue to move down. An initial support on the downside is near the $2,320 level.

The first key support is now forming near the $2,250 level. A downside break below the $2,250 level might start another strong decline. The next major support for the bulls may perhaps be near the $2,150 zone. Any more losses could push the price towards the $2,000 level.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now near the 50 level.

Major Support Level – $2,150

Major Resistance Level – $2,550