Ethereum price extended gains above $2,250 before it started a downside correction. ETH is now consolidating above $2,120 and might aim for a fresh increase.
Ethereum started a decent upward move above the $2,220 zone. The price is trading above $2,180 and the 100-hourly Simple Moving Average. There is a declining channel forming with resistance at $2,225 on the hourly chart of ETH/USD (data feed via Kraken). The pair could start a fresh increase if it stays above the $2,140 zone. Ethereum Price Holds Uptrend SupportThe bulls pumped the price above $2,250. A high was formed at $2,273 before the price started a downside correction. The price dipped below $2,220. There was a spike below the 50% Fib retracement level of the upward move from the $2,060 swing low to the $2,273 high.
Immediate resistance is seen near the $2,200 level. The first key resistance is near the $2,225 level. There is also a declining channel forming with resistance at $2,225 on the hourly chart of ETH/USD. The next major resistance is near the $2,265 level. A clear move above the $2,265 resistance might send the price toward the $2,320 resistance. An upside break above the $2,320 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,400 resistance zone or even $2,450 in the near term.
Another Decline In ETH?If Ethereum fails to clear the $2,225 resistance, it could start a fresh decline. Initial support on the downside is near the $2,165 level. The first major support sits near the $2,140 zone or the 61.8% Fib retracement level of the upward move from the $2,060 swing low to the $2,273 high.
A clear move below the $2,140 support might push the price toward the $2,110 support. Any more losses might send the price toward the $2,060 region. The main support could be $2,020.
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 – $2,140
Major Resistance Level – $2,225
