25 December 2023
Ethereum price is correcting gains from the $2,350 resistance zone. ETH could start a fresh increase if it stays above the $2,200 support zone.
Ethereum started a downside correction from the $2,350 resistance zone.
The price is trading near $2,275 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance near $2,285 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could attempt a fresh increase unless there is a close below $2,200.
Ethereum Price Remains Supported
Ethereum price failed again to gain pace for a move above the $2,350 level. ETH formed a short-term near $2,350 and recently started a downside correction, like Bitcoin.
There was a move below the $2,320 and $2,300 levels. The price even spiked below $2,250. A low was formed near $2,247 and the price is now correcting higher. There was a move above the $2,265 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,326 swing high to the $2,247 low.
Ethereum is now near $2,275 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,285 level. There is also a key bearish trend line forming with resistance near $2,285 on the hourly chart of ETH/USD.
The trend line is close to the 50% Fib retracement level of the downward move from the $2,326 swing high to the $2,247 low. A close above the $2,285 resistance could send the price toward $2,350.
Source: ETHUSD on TradingView.com
A clear move above the $2,350 zone could start a major increase. The next resistance sits at $2,420. Any more gains could start a wave toward the $2,500 level, above which Ethereum might rally and test the $2,550 zone.
More Losses in ETH?
If Ethereum fails to clear the $2,285 resistance, it could continue to move down. Initial support on the downside is near the $2,220 level.
The first key support could be the $2,200 zone. A downside break and a close below $2,200 might send the price further lower. In the stated case, Ether could revisit the $2,170 support. Any more losses might send the price toward the $2,120 level in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $2,200
Major Resistance Level – $2,285