Anticipating Ethereum’s Price Drop to $2K as Crucial Support Line Collapses

Anticipating Ethereum's Price Drop to $2K as Crucial Support Line Collapses


Ethereum Price Continues to Decline

The price of Ethereum has entered a new downward trend, falling below key support levels at $2,350 and $2,250. It is currently trading below $2,250 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, there is a significant bearish trend line forming with resistance near $2,240.

Consolidation and Potential Recovery

After reaching a new weekly low at around $2,165, Ethereum’s price is now consolidating its losses. There was a slight increase above the $2,220 level, testing the 23.6% Fib retracement level. However, the price is still facing resistance near the $2,240 level.

If Ethereum manages to clear the resistance levels at $2,240 and $2,280, it could attempt a fresh increase. The next major hurdle would be at around $2,360 or the 61.8% Fib retracement level.

Possible Downward Movement

If Ethereum fails to break through the resistance at $2,440, it may experience another decline. The initial support on the downside is expected near the $2,200 level. Further down, the key support zone lies at around $2,165.

A break below this support could lead to further losses for Ether and potentially test the $2,120 support level. Any additional losses might push the price towards $2,000.

Technical Indicators

The MACD for ETH/USD is showing increasing momentum in the bearish zone on the hourly chart. Additionally, the RSI has dropped below the 50 level.

Major Support Level: $2,165

Major Resistance Level: $2,480

Hot Take: Ethereum Faces Uphill Battle as Price Declines

The price of Ethereum continues to face downward pressure, falling below key support levels. Despite a brief consolidation period, the resistance at $2,240 remains a significant hurdle for a potential recovery. If Ethereum fails to break through this level and the subsequent resistance at $2,280, it could experience further losses.

On the other hand, if Ethereum manages to overcome these resistance levels and surpasses $2,360, it may signal a decent recovery. However, with technical indicators pointing towards bearish momentum, the path ahead for Ethereum remains challenging.

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Source: ETHUSD on TradingView.com

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