Ethereum Price Grinds Lower: Is the Bullish Momentum Fading?

Ethereum price extended its decline below the $2,450 level. ETH is now consolidating and might struggle to recover above the $2,425 level.

Ethereum declined further and traded below the $2,400 zone.
The price is trading below $2,420 and the 100-hourly Simple Moving Average.
There is a connecting bearish trend line forming with resistance at $2,425 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above the $2,350 support to start a fresh increase in the near term.

Ethereum Price Holds Support

Ethereum price remained in a bearish zone and extended losses below the $2,550 level. ETH traded below the $2,450 support to enter a bearish zone like Bitcoin. There was also a move below the $2,400 level.

A low was formed near $2,352 and the price is now consolidating losses. There was a minor increase above the $2,365 level. The price is still below the 23.6% Fib retracement level of the downward move from the $2,655 swing high to the $2,352 low.

Ethereum price is now trading below $2,420 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,420 level. There is also a connecting bearish trend line forming with resistance at $2,425 on the hourly chart of ETH/USD.

The first major resistance is near the $2,500 level or the 50% Fib retracement level of the downward move from the $2,655 swing high to the $2,352 low. The next key resistance is near $2,535.

An upside break above the $2,535 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,650 resistance zone in the near term. The next hurdle sits near the $2,680 level or $2,665.

More Losses In ETH?

If Ethereum fails to clear the $2,420 resistance, it could continue to move down. Initial support on the downside is near the $2,350 level. The first major support sits near the $2,320 zone.

A clear move below the $2,320 support might push the price toward $2,250. Any more losses might send the price toward the $2,150 support level in the near term. The next key support sits at $2,120.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,350

Major Resistance Level – $2,420