Ethereum is consolidating below $2,600 against the US Dollar. ETH price needs to break above $2,600 and $2,620 to start a major rally anytime soon.
Ethereum is still struggling to break above the $2600 and $2620 resistance levels. The price is now trading below $2,600 and the 100 hourly simple moving average. There is a major contracting triangle forming with resistance near $2,590 on the hourly chart of ETH/USD (data feed via Kraken). The pair needs to gain strength above $2,620 to post a steady rise in the coming sessions.
Ethereum Price Nears Breakout
Ethereum remained below the key $2600 and $2620 resistance levels. However, ETH was also well-bid above the $2,500 support level.
The recent high was near $2,595 before the price dropped below $2,550. It traded as low as $2,538 and is currently consolidating losses. It is now trading below $2,600 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $2,565 level.
The 50% Fibonacci retracement level of the recent decline from the $2,595 high to $2,538 low is also close to the $2,565 level. Furthermore, there is a major contracting triangle forming with resistance near $2,590 on the hourly chart of ETH/USD.
An intermediate resistance is near $2,575 and the 100 hourly simple moving average. It is close to the 61.8% Fibonacci retracement level of the recent drop from the $2,595 high to $2,538 low.
Source: ETHUSD on TradingView.com
Ether price needs to break above the $2,575 and $2,600 resistance levels to start a steady rise. An immediate barrier could be $2,620, above which the bulls could point to a strong rally.
New drop in ETH?
If ethereum fails to start a new rise above the $2,600 level, another drop could start. An initial support on the downside is near the $2,540 level.
The next big support is near the $2,500 level. A close below the $2,500 support zone could put a lot of pressure on the bulls. The next big support could be near the $2,420 level, below which there is a risk of a move towards the $2,350 level in the coming days.
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Major Support Level: $2,500
Major resistance level: $2,620
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