TA: Ethereum Resumes Decline, Here’s What Could Trigger More Downsides - SMARTNAIRA

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Monday, 31 May 2021

TA: Ethereum Resumes Decline, Here’s What Could Trigger More Downsides

Ethereum failed to continue above $2,500 and started a fresh decline against the US Dollar. ETH price is showing bearish signs and it could continue lower below $2,240.

  • Ethereum is struggling to gain bullish momentum above the $2,400 and $2,500 levels.
  • The price is now trading well below $2,450 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $2,410 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could accelerate lower if it breaks the $2,200 support zone in the near term.

Ethereum Price Is Showing Bearish Signs

Ethereum started a decent recovery from the $2,200 support zone. ETH climbed above the $2,300 and $2,350 resistance levels. However, the bulls failed to gain strength for a push above $2,450 and the 100 hourly simple moving average.

The price started a fresh decline and traded below the $2,400 level. It broke the 50% Fib retracement level of the upward move from the $2,200 swing low to $2,481 high.

It is now trading well below $2,450 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $2,410 on the hourly chart of ETH/USD. Ether is now testing the 61.8% Fib retracement level of the upward move from the $2,200 swing low to $2,481 high.

Ethereum Price

Source: ETHUSD on TradingView.com

On the upside, an immediate resistance is near the $2,360 level. The first major resistance is near the trend line and the $2,440 level. A close above the trend line could start a major increase towards the $2,500 level. The next major resistance is near the $2,550 level.

More Losses in ETH?

If Ethereum fails to clear the $2,400 and $2,450 resistance levels, it could extend its decline. An initial support on the downside is near the $2,250 zone.

The first major support is now near the $2,200 level. A downside break below the $2,200 support might spark a larger decline. The next key support is near the $2,200 level. Any more losses could lead the price towards the $1,850 support zone, followed by the $1,700 region.

Technical Indicators

Hourly MACD The MACD for ETH/USD is slowly losing pace in the bearish zone.

Hourly RSI The RSI for ETH/USD is currently below the 50 level.

Major Support Level – $2,200

Major Resistance Level – $2,450



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