Ethereum price nosedived after it settled below $3,000. ETH is down over 20% and it is now attempting to recover from the $2,000 zone.
- Ethereum started a major decline below the $2,800 and $2,650 levels.
- The price is trading below $2,500 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance at $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a recovery wave if it clears the $2,500 resistance zone.
Ethereum Price Takes Major Hit
Ethereum price started a major decline after it broke the $3,000 support. ETH dragged Bitcoin lower and traded below the $2,500 support. It declined over 20% and there was a sharp decline below the $2,200 level.
The price even dived below $2,000 and tested $1,920. A low is formed at $1,911 and the price is now consolidating losses. There was a minor recovery wave above the $2,200 level. The price broke the 23.6% Fib retracement level of the downward move from the $2,922 swing high to the $1,911 low.
Ethereum price is now trading below $2,500 and the 100-hourly Simple Moving Average. If there is a steady recovery wave, the price could face resistance near the $2,420 level and the 50% Fib retracement level of the downward move from the $2,922 swing high to the $1,911 low.
The first major resistance is near the $2,500 level. There is also a key bearish trend line forming with resistance at $2,500 on the hourly chart of ETH/USD. The next major hurdle is near the $2,540 level. A close above the $2,540 level might send Ether toward the $2,680 resistance.
Source: ETHUSD on TradingView.com
The next key resistance is near $2,800. An upside break above the $2,800 resistance might send the price higher toward the $3,000 resistance zone in the near term.
Another Decline In ETH?
If Ethereum fails to clear the $2,500 resistance, it could start another decline. Initial support on the downside is near $2,200. The first major support sits near the $2,120 zone.
A clear move below the $2,120 support might push the price toward $2,050. Any more losses might send the price toward the $2,000 support level in the near term. The next key support sits at $1,920.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $2,120
Major Resistance Level – $2,500
Aayush Jindal
Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
