Short positions test key support level, Ethereum (ETH) price faces downside risk

Gate News bot news, NewsBTC states that the price of Ethereum failed to break through 2680 USD and has begun a new round of decline like Bitcoin. The price of ETH has fallen below the levels of 2620 USD and 2600 USD.

Short sellers even pushed the price below $2600. In addition, on the ETH/USD hourly chart, the price broke below the support level of the bullish trend line at $2540. The currency pair tested the $2450 area and began to enter a consolidation phase.

A slight increase has occurred above the 23.6% Fibonacci retracement level in the downward trend from the high point of $2679 to the low point of $2455. The price of Ethereum is currently below $2550 and the 100-hour simple moving average.

On the upside, prices may face resistance around $2540. The next key resistance level is near $2565. This level is close to the 50% Fibonacci retracement of the downward move from the high of $2679 to the low of $2455. The first major resistance level is around $2620.

If it can clearly break through the resistance level of 2620 USD, it may drive the price to fall towards the resistance level of 2680 USD. If it can break through the resistance level of 2680 USD, more upward movement may be welcomed in the coming trading days. In this case, Ether may rise to the resistance level of 2800 USD in the short term, and even 2880 USD.

(Source: Trading View)