Key Takeaways:
- Ethereum is showing a few bearish signs from the $2,500 resistance zone.
- ETH/USD traded below a key bullish trend line with support at $2,250 on the daily chart.
- The price could decline sharply toward $1,985 if it fails to stay above the 50-day simple moving average (blue).
New Delhi(CoinChapter.com): Ethereum (ETH) is struggling to stay above the $2,200 support. The price is showing signs of uptrend exhaustion and might dive toward $1,985.
Ethereum Price Signals Short-term Top
In the past few days, Ethereum price made a few attempts to gain bullish momentum above the $2,400 resistance zone. However, ETH struggled to settle above $2,400. It saw a couple of rejection patterns near the $2,450 zone.
The last swing high was formed near $2,447 before the price corrected lower. There was a sharp decline below the $2,320 and $2,300 levels. The price even dived below the 50-day simple moving average (blue), but there was no daily close. There was a move below the 23.6% Fib retracement level of the main increase from the $1,521 swing low to the $2,447 high.
Ethereum is still holding the 50-day simple moving average (blue), like Bitcoin. The current price action and technical structure suggest that the price is struggling to continue higher and might extend its decline.
The first key support sits at the 50-day simple moving average (blue) at $2,200. A daily close below the $2,200 support zone could spark bearish moves.
The next key support sits at $2,135, below which Ethereum might dive toward the 50% Fib retracement level of the main increase from the $1,521 swing low to the $2,447 high at $1,985. Perhaps more losses may send the price toward the $1,740 pivot level in the coming weeks.
Another Increase in ETH?
Conversely, Ethereum might remain stable above $2,200 or $2,135 and attempt another increase. Immediate resistance on the upside is near the $2,280 level.
A convincing daily close above the $2,280 level might send ETH toward the $2,350 resistance. The main resistance sits at $2,450. If the bulls clear the $2,450 hurdle, the price could see a 10%-15% rally. In the stated case, the price could even test the $3,000 handle.
Overall, Ethereum price is consolidating near the 50-DSMA, with a minor bearish angle. A daily close below $2,200 and $2,135 might send it toward $1,985. On the other hand, the price might make another attempt to surpass $2,450 in the coming days.
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