Ethereum began a major decline from the $ 2.700 zone, with ETH which then dropped below $ 2.550 and could accelerate below the $ 2.420 support. The price is now trading below $ 2.550 and the 100-hour simple moving average. There is also a key bearish trend line forming with resistance near $ 2.490 on the ETH / USD hourly chart. The pair could decline further if there is a close below the $ 2.420 support zone.
Recall that Ethereum has struggled to settle above the $ 2.700 resistance in recent days: ETH has touched a maximum near the $ 2.700 level and started a new decline; there was a sharp move below the $ 2.620 and $ 2.550 levels.
Hence, the bears pushed the price below the $ 2.500 level and the 100-hour simple moving average. It has formed a low close to $ 2.422 and hence the price is consolidating the losses. On the upside, initial resistance is seen near the $ 2.485 level. There is also a key bearish trend line forming with resistance near $ 2.490 on the ETH / USD hourly chart.
The first major resistance is now near the $ 2.565 level; the main breakout zone is close to the $ 2.650 level and the 100-hour simple moving average.
A close above the $ 2.650 level could open the door for a decent hike. In the case indicated, the ether price could rise towards the $ 2.700 resistance.
If Ethereum fails to gain pace above the $ 2.565 resistance, it may continue to move lower. A first support on the downside is near the $ 2.420 zone. The next major support is near the $ 2.400 level. Should there be a downside break below $ 2.400 and the recent low, the price of Ether could accelerate lower. In this case, it could even drop below the $ 2.350 level.