Ethereum Price Sinks 10% – Is This a Buying Opportunity?

Ethereum price started a fresh decline from the $2,850 resistance zone. ETH is down over 10% and is struggling to stay above the $2,500 level.

• Ethereum is facing an increase in selling below the $2,650 zone.
• The price is trading below $2,750 and the 100-hourly Simple Moving Average.
• There is a short-term bearish trend line forming with resistance at $2,600 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a decent upward move if it settles above $2,600 and $2,650.

Ethereum Price Takes A Hit

Ethereum price failed to clear the $2,850 resistance zone and started a fresh decline, like Bitcoin. ETH gained pace below the $2,720 and $2,650 support levels to enter a bearish zone.

The price declined over 10% and even declined below the $2,550 support zone. A low was formed at $2,458 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $2,854 swing high to the $2,458 low.

Ethereum price is now trading below $2,600 and the 100-hourly Simple Moving Average. There is also a short-term bearish trend line forming with resistance at $2,600 on the hourly chart of ETH/USD.

On the upside, the price seems to be facing hurdles near the $2,550 level. The first major resistance is near the $2,600 level. The main resistance is now forming near $2,650 or the 50% Fib retracement level of the downward move from the $2,854 swing high to the $2,458 low.

A clear move above the $2,650 resistance might send the price toward the $2,750 resistance. An upside break above the $2,750 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,850 resistance zone or even $2,920 in the near term.

More Losses In ETH?

If Ethereum fails to clear the $2,600 resistance, it could start another decline. Initial support on the downside is near the $2,550 level. The first major support sits near the $2,450 zone.

A clear move below the $2,450 support might push the price toward the $2,320 support. Any more losses might send the price toward the $2,250 support level in the near term. The next key support sits at $2,120.

Technical Indicators

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

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

Major Support Level – $2,450

Major Resistance Level – $2,650