Ethereum’s price experienced a significant drop after it settled below $3,000, plummeting more than 20% and now making attempts to recover from the $2,000 zone.
Ethereum commenced a steep decline after breaching key levels at $2,800 and $2,650. Currently, the cryptocurrency is trading at below $2,500 and is beneath the 100-hourly Simple Moving Average. A bearish trend line is evident, with resistance at $2,500 on the hourly chart of ETH/USD.
The downward trend for Ethereum initiated strongly as it broke the $3,000 support level, dragging Bitcoin down along with it to trade below $2,500. It witnessed a steep decline that took the price below the $2,200 threshold. The price even briefly dropped below $2,000, touching a low of $1,920 and forming a base at $1,911. Since then, the cryptocurrency is attempting to consolidate its losses, showing a minor recovery above the $2,200 level.
Amid the minor recovery, Ethereum crossed the 23.6% Fib retracement level of the downward movement from the $2,922 swing high to the $1,911 low but continues to trade below $2,500 and the 100-hourly Simple Moving Average. Should there be a consistent recovery wave, Ethereum’s price might encounter resistance near the $2,420 level, which aligns with the 50% Fib retracement of its recent downward move.
Significant resistance is pegged near the $2,500 mark, with a notable bearish trend line formed at this level on the hourly chart of ETH/USD. The subsequent major obstacle is identified near the $2,540 level, and a successful close above this threshold could propel Ether towards the $2,680 resistance level. If Ethereum can break above the next key resistance at $2,800, it might accelerate towards the $3,000 resistance zone in the short term.
However, if Ethereum fails to breach the $2,500 resistance, it could trigger another downward slide. Immediate support on the downside lies near $2,200, with a significant support zone around $2,120. A decisive move below this level might push the price towards $2,050, with further losses potentially driving the price down to the $2,000 support zone. The subsequent key support is situated at $1,920.
Technical indicators reveal that the hourly MACD for ETH/USD is losing momentum in its bearish trend, and the hourly RSI is positioned below the 50 zone, indicating continued downward pressure. With major support around $2,120 and resistance at $2,500, Ethereum’s near-term movements are poised at a critical juncture, with any breakthrough or breakdown likely dictating its subsequent trend.
