Ethereum Price Rejected Above $2,400, Upside Momentum Starts To Fade

Ethereum price started a fresh increase and remained stable above $2,350. $ETH is now consolidating and might aim for more gains if it clears $2,425.

• Ethereum started a steady increase above the $2,380 zone.
• The price is trading above $2,350 and the 100-hourly Simple Moving Average.
• There is a bullish trend line forming with support at $2,320 on the hourly chart of $ETH/USD (data feed via Kraken).
• The pair could continue to move up if it stays above the $2,320 zone.

Ethereum Price Corrects Recent Gains

Ethereum price managed to stay above the $2,250 support and started a fresh increase, like Bitcoin. $ETH price gained pace for a move above $2,350 and $2,380.

The last swing high was formed at $2,424 before there was a downside correction. The price dipped below the $2,380 level. There was a move below the 38.2% Fib retracement level of the upward move from the $2,258 swing low to the $2,424 high.

Ethereum price is now trading above $2,320 and the 100-hourly Simple Moving Average. There is also a bullish trend line forming with support at $2,320 on the hourly chart of $ETH/USD.

Source: ETHUSD on TradingView.com

If the bulls remain in action above $2,300, the price could attempt another increase. Immediate resistance is seen near the $2,385 level. The first key resistance is near the $2,400 level. The next major resistance is near the $2,420 level. A clear move above the $2,420 resistance might send the price toward the $2,440 resistance. An upside break above the $2,440 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,500 resistance zone or even $2,550 in the near term.

Another Decline In $ETH?

If Ethereum fails to clear the $2,420 resistance, it could start a downside correction. Initial support on the downside is near the $2,340 level or the 50% Fib retracement level of the upward move from the $2,258 swing low to the $2,424 high. The first major support sits near the $2,320 zone.

A clear move below the $2,320 support might push the price toward the $2,285 support. Any more losses might send the price toward the $2,250 region. The main support could be $2,200.

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 above the 50 zone.

Major Support Level – $2,320

Major Resistance Level – $2,385

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