Ethereum is consolidating below $2,600 against the US Dollar. ETH price needs to clear $2,600 and $2,620 to start a major near-term increase.
- Ethereum is still struggling to clear the $2,600 and $2,620 resistance levels.
- The price is now trading below $2,600 and the 100 hourly simple moving average.
- A major contraction triangle is forming with resistance near $2,590 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to gain strength above $2,620 to register a steady increase over the next few sessions.
Ethereum Price Approaches Breakout
Ethereum remained below the key resistance levels of $2,600 and $2,620. However, ETH was also bid well above the $2,500 support level.
The recent high was near $2,595 before the price dipped below $2,550. It traded as low as $2,538 and is currently consolidating its losses. It is now trading below $2,600 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $2,565 level.
The 50% Fib retracement level of the recent decline from the $2,595 high to $2,538 low is also near the $2,565 level. Additionally, a major contraction triangle is forming with resistance near $2,590 on the hourly chart of ETH/USD.
An intermediate resistance is near $2,575 and the 100 hourly simple moving average. It is near the 61.8% Fib retracement level of the recent swing decline from the $2,595 swing low to $2,538 low.
Source: ETHUSD on TradingView.com
Ether price needs to clear the $2,575 and $2,600 resistance levels to start a steady rise. An immediate barrier could stand at $2,620, above which bulls could aim for a big boost.
New decline of ETH?
If Ethereum fails to initiate a further rise above the $2,600 level, it could initiate a further decline. An initial support on the downside is near the $2,540 level.
The next major support is near the $2,500 level. A close below the $2,500 support zone could put strong pressure on the bulls. The next major support could be near the $2,420 level, below which there is a risk of movement towards the $2,350 level in the coming days.
Technical indicators
Hourly MACD – The MACD for ETH/USD is now losing ground in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Major Support Level – $2,500
Major resistance level – $2,620
