Ethereum could avoid a major downtrend if it closes above one key level

Ethereum extended its decline below the $2,500 support zone against the US dollar. ETH price is recovering but needs to clear $2,680 to start a decent rise.

Ethereum extended its decline below the $2,500 support before correcting higher. The price is now trading below $2,600 and the 100 hourly simple moving average. A major bearish trendline is forming with resistance near $2,600 on the ETH/USD hourly chart (data feed via Kraken). The pair could enter a steady wave of recovery if it clears USD 2,600 and USD 2,680.

Ethereum price faces hurdle

Ethereum remained in a bearish zone below the $2,650 level. ETH even extended its decline below the $2,500 support level and settled below the 100 hourly easy moving average.

A low was formed near $2,445 and the price is now correcting losses. There was a move above the $2500 resistance level. Ether price even spiked above the 50% Fib retracement level from the recent drop from the $2,648 swing high to $2,445 low.

However, the bears remained active near the USD 2,570 level. It is near the 61.8% Fib retracement level from the recent drop from the $2,648 swing high to $2,445 low.

The first major resistance is seen near the $2,600 level (the recent disturbance zone). A major bearish trendline is also forming with resistance near USD 2,600 on the ETH/USD hourly chart. The next major resistance could be near the 100 hourly simple moving average and the USD 2,680 level.

Source: ETHUSD on TradingView.com

A close above the 100 hourly SMA and then USD 2,680 could spark a steady rise. In the mentioned case, the price may rise to $2,800 or even $2,880.

More cons in ETH?

If ethereum fails to start a fresh rise above the $2,600 level, it could spark another drop. An initial support on the downside is near the USD 2,500 level.

The next major support is near the low of $2,445, below which the price could gain bearish momentum. In the mentioned case, ether price could fall towards the $2,400 support zone. If there are further losses, it may require a near-term move towards the $2,300 level.

Technical indicators

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

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

Major Support Level – $2500

Major Resistance Level – $2680

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