- Ethereum price started a downside correction from the $2,350 resistance against the US Dollar.
- ETH price is now trading above $2,260 and the 55 simple moving average (4 hours).
- There is a key contracting triangle forming with support at $2,260 on the 4-hour chart (data feed from Coinbase).
- The pair could start a fresh increase if it clears the $2,300 resistance zone.
Ethereum price is declining below $2,300 against the US Dollar. ETH/USD remains at a risk of more downsides below the $2,260 support zone.
Ethereum Price Analysis
In the past few weeks, Ethereum started a decent increase above the $2,220 resistance zone against the US Dollar. ETH price climbed above the $2,260 and $2,300 resistance levels.
Finally, it tested the $2,350 resistance zone. A high was formed near $2,344 before there was a downside correction. There was a move below the $2,300 support zone. The price even traded below the 23.6% Fib retracement level of the upward move from the $2,115 swing low to the $2,344 high.
ETH is now trading below $2,300 and the 55 simple moving average (4 hours). There is also a key contracting triangle forming with support at $2,260 on the 4-hour chart.
On the upside, the price is now facing resistance near the $2,300 level. The next major resistance is near the $2,350 level. The next major resistance is near the $2,400 zone. A clear move above the $2,350 and $2,400 resistance levels might call for a fresh move to $2,500.
Any more gains could even send the price toward the $2,550 resistance zone or even $2,620 in the near term. On the downside, initial support is near the $2,260 level and the trend line.
The next major support is now near the $2,220 level or the 50% Fib retracement level of the upward move from the $2,115 swing low to the $2,344 high. A break below the $2,220 support could push the price to $2,120. If the bulls fail to protect the $2,120 support, the price might decline toward $2,000.
Looking at the chart, Ethereum price is clearly trading below $2,300 and the 55 simple moving average (4 hours). Overall, Ether price could continue to move down if it breaks the $2,260 support zone.
Technical indicators
4 hours MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is now below the 50 level.
Key Support Levels – $2,260, followed by the $2,220 zone.
Key Resistance Levels – $2,300 and $2,350.
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