Why Ethereum (ETH) remains attractive on declines to $ 2,400

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Ethereum has remained well above the $ 2,500 zone against the US dollar. The price of ETH needs to stay above $ 2,400 for a further short-term rise.

  • Ethereum struggled to clear resistance at $ 2,650 and corrected lower.
  • The price is still trading above $ 2,500 and the 100 hour simple moving average.
  • A crucial bullish trendline is forming with support near $ 2,460 on the hourly ETH / USD chart (data feed via Kraken).
  • The pair is likely to start a further rise unless there is a clear break below $ 2,400 in the near term.

Ethereum Price holds key support

Ethereum started a further rise above the $ 2,600 level, surpassing bitcoin. The price of ETH even broke through the resistance of $ 2,650, but there was no real bullish momentum.

A high was formed near $ 2,666 before the price corrected lower. It broke through the support level of $ 2,600, but is still well above $ 2,500 and the 100-hour simple moving average. There was a break below the 50% Fib retracement level of the uptrend from the $ 2,510 low to $ 2,666.

Price is now testing the support area of ​​$ 2,550. It is near the 76.4% Fib retracement level of the move up from the $ 2,510 low to $ 2,666. A crucial bullish trendline is also forming with support near $ 2,460 on the ETH / USD hourly chart.

Source: ETHUSD on TradingView.com

On the upside, the first key resistance is near the $ 2,600 level. Major resistance is now forming near the $ 2,650 level. A clean breakout and close above $ 2,650 could start another steady rise. In this case, the price could revert to the level of $ 2,700.

More losses in ETH?

If Ethereum fails to continue above $ 2,620, it could prolong its decline. Immediate downside support is near the $ 2,520 level.

The next major support is near the $ 2,510 level and the 100 hour simple moving average. Major support is now forming near the trendline and $ 2,450. A clear bearish break below the $ 2450 support area could drive the price towards the $ 2350 support.

Technical indicators

Hourly MACDThe MACD for ETH / USD is slowly accelerating in the bearish zone.

Hourly RSIThe RSI for ETH / USD is now close to the 40 level.

Major Support Level – $ 2,450

Major Resistance Level – $ 2,650

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