Ethereum price deepened losses and tested the support zone at $2,450. ETH is recovering and trying to gain momentum to break above the $2,550 level.

• Ethereum started a wave of recovery from the $2,450 zone.
• The price is trading below $2,560 and the 100-hour plain moving average.
• There has been a break above a key bearish trend line with resistance at $2,540 on the ETH/USD hourly chart (data via Kraken).
• The pair could start a up-to-date rally if it breaks the resistance levels at $2,580 and $2,600.

Etherum price begins recovery

Ethereum price extended its decline below the $2,550 level, as did Bitcoin. ETH was already trading at $2,445 and recently began an upward correction.

There was a slight augment above the $2,500 level. The price was trading above the 23.6% Fib retracement level in a bearish wave from a high of $2,760 to a low of $2,445. There was also a break above the key bearish trend line with resistance at $2,540 on the ETH/USD hourly chart.

Ethereum price is currently trading below $2,560 and the 100-hour plain moving average. On the other hand, the price seems to be facing headwinds near the $2,560 level.

The first major resistance is near the $2,580 level and the 100-hour plain moving average. The main resistance is currently forming near $2,600. It is close to the 50% Fib retracement level of the downward wave from the high of $2,760 to the low of $2,445.

A clear move above the $2,600 resistance could push the price towards the $2,650 resistance. An upward break above the resistance at $2,650 could trigger further gains in the coming sessions. In the given case, Ether may rise towards the resistance zone at $2,750.

Another ETH drop?

If Ethereum fails to break through the resistance at $2,560, another decline could begin. Initial downside support is near the $2,505 level. The first major support is located near the $2,485 zone.

A clear move below the support at $2,485 could push the price towards $2,450. Any further losses could push the price towards the $2,420 support level in the near future. The next key support is at $2,340.

Technical indicators

Hourly MACD – MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently below the 50 zone.

Main support level – USD 2,500

Major resistance level – $2,580