Ethereum price deepened losses and tested the support zone at $2,450. ETH is recovering and facing many obstacles near the $2,550 level.

• Ethereum has started a downward correction below the support at $2,550.
• The price is trading below $2,550 and the 100-hour uncomplicated moving average.
• A key bearish trend line is forming on the hourly chart of ETH/USD (data via Kraken) with resistance at $2,560.
• The pair could start a fresh rally if it breaks the resistance levels at $2,550 and $2,600.

Etherum price begins recovery

Ethereum price extended its decline below the $2,600 level, as did Bitcoin. ETH traded below the $2,550 and $2,500 support levels to enter a short-term bear zone.

The price has only reached $2,445 and is currently correcting losses. There was a slight enhance above the $2,500 level. The price was trading above the 23.6% Fib retracement level, the result of a downward move from a high of $2,758 to a low of $2,445.

Ethereum price is currently trading below $2,550 and the 100-hour uncomplicated moving average. On the other hand, the price seems to be facing some headwinds near the $2,550 level. A key bearish trend line is also forming on the ETH/USD hourly chart with resistance at $2,560.

The first major resistance is near the $2,600 level. It is close to the 50% Fib retracement level, which is a move down from the high of $2,758 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 this case, Ether may rise towards the resistance zone at $2,700 in the near future. The next hurdle is near the $2,720 level, or $2,750.

Another ETH drop?

If Ethereum fails to break the resistance at $2,550, another decline could begin. Initial downside support is near the $2,520 level. The first major support is located near the $2,500 zone.

A clear move below the support at $2,500 could push the price towards $2,450. Any further losses could push the price towards the $2,450 support level in the near future. The next key support is at $2,420.

Technical indicators

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

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

Main support level – USD 2,450

Major resistance level – $2,550