Ethereum Faces Major Price Decline
The price of Ethereum experienced a significant decline, dropping over 8% and breaking the $2,200 support zone. Currently, Ethereum is trading below both the $2,300 level and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, there was a break below a key bullish trend line with support near $2,340.
Chance for Recovery if Support Holds
Unless there is a close below the $2,100 support zone, there is still a possibility for Ethereum to rise again. The recent drop saw ETH fall below the $2,000 support but it managed to find some support around $1,980. The price is now attempting a recovery wave and has climbed above the $2,150 and $2,180 levels.
Resistance Levels to Watch
On the upside, Ethereum is currently facing resistance near the $2,275 zone. The next significant resistance level is around $2,300 or the 76.4% Fib retracement level of the downward move from the swing high of $2,401 to the low of $1,980. If Ethereum can surpass this level, it could potentially reach $2,400 or even higher at $2,450.
Potential for Another Decline
If Ethereum fails to clear the resistance at $2,300, it may experience another decline. The initial support on the downside is near the $2,180 level followed by a key support at $2,120. The main support level currently sits at $2,100. A break below $2,200 could trigger an extended decline with a potential target at $1,880 in the near term.
Technical Indicators
The MACD for ETH/USD is gaining momentum in the bearish zone, indicating a negative trend. The RSI for ETH/USD is now below the 30 level, further confirming the bearish sentiment.
Hot Take: Ethereum Faces Major Setback as Price Plummets
Ethereum’s price took a major hit, dropping over 8% and breaking through key support levels. The decline was accompanied by a break below a crucial bullish trend line, signaling a shift in market sentiment. However, there is still hope for a recovery if Ethereum manages to hold above the $2,100 support zone. Resistance levels to watch include $2,275 and $2,300, with potential targets at $2,400 and $2,450. On the other hand, if Ethereum fails to clear these resistance levels, it may face another decline with initial support at $2,180 and a major support level at $2,100.
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