Ethereum Shrinks Profit, Which Could Spark Another Rise

Ethereum failed to cross $2,780 and corrected lower against the US dollar. ETH price needs to stay above $2,570 to start another surge in the near term.

Ethereum struggled to clear the $2,780 zone and corrected gains. The price is now trading below $2,650 and the 100 hourly simple moving average. There was a break below a key bullish trendline with support near USD 2,660 on the ETH/USD hourly chart (data feed via Kraken). The pair could extend its decline if it does not stay above USD 2,570 and USD 2,550.

Ethereum price corrects lower

Ethereum extended its gains above the $2,700 level. ETH even managed to hit the $2,750 resistance level but faced a strong resistance near $2,780.

It peaked near $2,775 and the price started a downward correction. There was a break below the $2,700 and $2,650 levels. Ether price dropped below $2,650 and the 100 hourly simple moving average. The price fell below the 50% Fib retracement level from the upward move from the $2,445 swing low to $2,775 high.

In addition, there was a break below a key bullish trendline with support near USD 2,660 on the ETH/USD hourly chart. The pair is now approaching the USD 2,570 support zone. It is near the 61.8% Fib retracement level of the upward move from the $2,445 swing low to $2,775 high.

If ether price remains above the $2,570 support, it could spark another surge. On the upside, an initial resistance is near the USD 2,620 zone.

Source: ETHUSD on TradingView.com

The first major resistance is seen near the $2,650 level and the 100 hourly simple moving average. The next major resistance is near the $2,780 level, above which the price could accelerate higher. In the mentioned case, the price may rise towards the $2,880 level.

Lose more in ETH?

If ethereum fails to start a fresh rise above the $2,650 level, it could continue to fall. An initial support on the downside is near the USD 2,570 level.

The next major support is near the USD 2,550 level. A close below the $2,570 and $2,550 support levels could push the price further. In the mentioned case, the price could be $2,445.

Technical indicators

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

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

Major Support Level – $2,570

Major Resistance Level – $2,650

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