Ethereum’s price has been undergoing a correction following gains from the $2,820 resistance level. The cryptocurrency has dipped below the $2,780 and $2,750 marks and is currently trading under $2,720, below the 100-hourly Simple Moving Average. A crucial bullish trend line saw a break at $2,740 on the hourly chart for ETH/USD. This trend suggests Ethereum could encounter bids around the $2,650 and $2,645 levels.
The cryptocurrency had previously extended its gains beyond the $2,750 resistance, even reaching past $2,800, before bearish forces took hold, forming a peak at $2,820. Following this, Ethereum entered a downside correction, similar to Bitcoin. The slide continued below the 50% Fibonacci retracement level from the upward wave between the $2,535 swing low to the $2,820 high. Additionally, the key bullish trend line at $2,740 provided support before it broke.
Ethereum’s price is now trading below $2,740 and the 100-hourly Simple Moving Average, with active bulls likely finding support near $2,645, close to the 61.8% Fibonacci retracement level from the earlier upward trend. If Ethereum manages another increase, it may face resistance around the $2,720 mark, with the first significant barrier at $2,740. Surpassing this level could propel the cryptocurrency towards the $2,820 resistance. The subsequent key resistance would be at $2,880, and a breakthrough beyond this could push prices towards the $3,000 zone in the near term.
Should Ethereum fail to overcome the $2,740 resistance, it may continue its downward trajectory. Immediate support lies near $2,645, with the first major support zone around $2,600. Falling below $2,600 might drive the price towards $2,550, where bullish forces might re-emerge. Any further losses could lead to a decline towards the $2,500 support level, with the next critical support at $2,440.
In terms of technical indicators, the hourly MACD for ETH/USD is gaining momentum in the bearish zone, while the hourly RSI for ETH/USD has dropped below the 50 zone. Major support is currently identified at $2,645, with significant resistance at $2,740.
