Ethereum is currently experiencing a dip, with its price falling over 5% and trading below $2,350. The downturn in value signals an increase in selling pressure, suggesting the potential for further decline to $2,120.
The recent price movement began after Ethereum failed to surpass the $2,450 resistance level. This triggered a bearish trend, causing the price to breach below the critical support at $2,400.
On the hourly chart of ETH/USD, a significant bullish trend line was broken at $2,400 support, marking the beginning of a more pronounced decline. The cryptocurrency fell further, breaking the $2,320 support zone and forming a low at $2,253. Currently, it is consolidating its losses below the $2,320 mark and the 100-hourly Simple Moving Average.
Ethereum’s price is now facing resistance near the $2,300 level, which aligns with the 23.6% Fibonacci retracement level of the downward move from the $2,465 high to the $2,253 low. The initial major resistance level lies at $2,320. If ETH manages to close above this level, it could propel the price toward the next major resistance at $2,360. Further resistance is expected around $2,385, corresponding to the 61.8% retracement level of the same downward move. Breaking through $2,385 could initiate a recovery, pushing the price toward the $2,450 resistance zone in the near term.
However, if Ethereum fails to clear the $2,320 resistance, it may face another decline. Initial support on the downside is near $2,250, with the first major support level at $2,200. Should the price drop below this level, it could head toward $2,150. Continued bearish momentum might further decrease Ethereum’s value to around $2,120. The next significant support level is anticipated at $2,050.
Technical indicators are reflecting the current bearish sentiment. The hourly MACD for ETH/USD is gaining momentum in the bearish zone, and the hourly RSI for ETH/USD is positioned below the 50 mark, indicating increased selling pressure. Major support and resistance levels for Ethereum stand at $2,250 and $2,320, respectively.
