Ethereum Bears Keep Pushing, Why Is The Decline Not Over Yet?

Ethereum extended the decline below the $2,700 support against the US Dollar. ETH price is struggling and could even drop below the $2,500 support.

Ethereum started a major drop below the $2,800 support level. The price is now trading below $2,700 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $2,700 on the hourly chart of ETH/USD (data feed via Kraken). The pair could rally but the bears could remain active near $2,650 and $2,700.

Ethereum price turns red

Ethereum failed to correct and rally above the $2,750 resistance zone. ETH settled below the $2,750 level and the 100 hourly simple moving average.

As a result, there were additional losses below the $2,650 support. The price gained pace and even dipped below $2,550. A low is formed near $2,511 and the price is now consolidating losses. An immediate resistance on the upside is near the $2560 level.

The 23.6% Fibonacci retracement level of the recent drop from the $2,752 high to $2,511 low is also close to the $2,560 level. The next major resistance is near the $2,650 level.

Also, the 50% Fibonacci retracement level of the recent decline from the $2,752 high to $2,511 low is near the $2,650 level. Major resistance is now forming near the $2,720 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $2,700 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

A clear move above $2,720 could start a steady rise. In the indicated case, the price could rally towards the $2,880 or even $3,000 resistance zone.

More losses in ETH?

If ethereum fails to start a recovery wave above the $2,650 level, another drop could start. An initial support on the downside is near the $2510 level or the recent low.

The next big support is near the $2,500 level. A downside break below $2,500 could spark another major drop. The next major support is near the $2,420 level. Any further losses could require a move towards $2,350 in the near term.

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