Ethereum has started a new downtrend from the $2,625 level. To enter the red zone, ETH traded below the $2,550 and $2,525 support levels.
The Ethereum price even dropped below $2,500, settling below the hourly simple moving average of 100. The price of ether has recently recovered sharply after trading as low as $2,486. The $2,525 and $2,550 resistance levels were clearly broken.
The bulls pushed the Ethereum price above the 50% Fib retracement level of the latest drop from the swing high of $2,624 to the low of $2,486. It is currently seeing resistance near $2,580.
On the hourly chart of ETH/USD, a key negative trend line is forming with resistance near $2,580. The trend line is around the 61.8 percent Fib retracement level of the current drop from the swing high of Ethereum $2,624 to the low of $2,486.
Near the $2,625 mark, the first substantial resistance is visible. Near the Ethereum $2,650 mark, the next major resistance is found. A closing above the $2,650 resistance level might signal the start of a continuous rise. In the above scenario, the Ethereum price could jump to around $2,750.
If ethereum fails to break through the $2,625 resistance mark, it may begin to fall. On the downside, $2,550 serves as an initial support level.
Near the $2,500 level, the next big support is visible. Ethereum price closes below the $2,500 support zone, it may even fall below $2,480. The bulls may take a stand near the $2,420 level, which is the next key support level. If they fail, there’s a chance the price may drop to $2,350.
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