Key Takeaways:
- Ethereum declined after facing rejection near the $2,700 resistance zone.
- ETH/USD is still below a major bearish trend line with resistance at $2,800 on the daily chart.
- The price must stay above $2,450 to avoid a significant decline in the near term.
Ethereum (ETH) faced rejection and declined below $2,600. The price is now approaching a crucial support zone near the $2,450 level.
Ethereum Price Dips Again
In the past few days, Ethereum saw a decent increase above the $2,550 resistance zone. ETH was able to climb above the $2,650 resistance while Bitcoin traded close to reaching a new all-time high. However, the bears remained active and pushed the market lower.
There was no upside break above the $2,720 and $2,750 resistance levels. More importantly, Ether is still below a major bearish trend line with resistance at $2,800 on the daily chart.
Ethereum is down over 5% and there was a clear move below the $2,550 support zone and the 50-day simple moving average (blue). The price is now consolidating near the $2,500 level with a bearish angle.
The current price action suggests that the price is facing an increase in selling pressure. Immediate support is near the $2,465 level. The first major support sits near the $2,450 level and a connecting bullish trend line on the same chart.
A daily close below the $2,450 level might send ETH toward the $2,250 support. If the bulls fail to defend the $2,250 support, ETH might even decline below the $2,200 support. The next major support is near the $2,100 level.
Another Increase In ETH?
Conversely, Ethereum might remain stable above $2,450 or $2,400 and attempt a fresh increase. On the upside, the price could face resistance near the $2,620 level. The first major resistance sits near the $2,650 level.
The next resistance is near the $2,750 level. The main resistance is now near the $2,800 zone, the bearish trend line, and the 50% Fib retracement level of the downward wave from the $3,566 swing high to the $2,099 low
A clear move above the $2,800 level could open the doors for a move toward the $3,000 level. The next hurdle could be near the $3,220 level or the 76.4% Fib retracement level of the downward wave from the $3,566 swing high to the $2,099 low.
If ETH bulls push the price above the $3,220 resistance, there could be a strong increase. In the stated case, the price could rise toward the $3,565 level.
Overall, Ethereum price is clearly struggling to clear the $2,750 and $2,850 resistance levels. If ETH dives below $2,450, there could be a larger decline toward $2,100 in the coming days.
The post Ethereum (ETH) Shows Bearish Signs — Is This Support Strong Enough? appeared first on CoinChapter.
