Market reaction to major sell-off results in over 20% crash of Ethereum price. 😱

Summary: Ethereum Price Plummeting

Ethereum has experienced a significant decline in value, dropping below key support levels including $2,800 and $2,650. The cryptocurrency is currently trading below $2,500 and the 100-hourly Simple Moving Average. A bearish trend line has formed with resistance at $2,500 on the ETH/USD hourly chart via Kraken. While a potential recovery wave may be on the horizon if the $2,500 resistance is breached, Ethereum’s price has taken a major hit in recent trading sessions.

Sharp Decline in Ethereum Price

The decline in Ethereum’s price was initiated when it breached the crucial $3,000 support level, dragging Bitcoin down with it. The descent continued as ETH fell below $2,500, surpassing a 20% drop and plunging under $2,200. The cryptocurrency even dipped below $2,000, hitting a low of $1,920 before showing signs of consolidation. Despite a minor recovery above $2,200, Ethereum’s price struggles to surpass key resistance levels, signaling a challenging period for the digital asset.

A sharp decline in price after breaking $3,000 support
ETH drops over 20% and falls below $2,200
Tests lows at $1,920 before consolidating losses
Minor recovery wave sees ETH surpass $2,200 level

Potential Recovery and Resistance Levels

Ethereum’s price is currently below $2,500 and the 100-hourly Simple Moving Average, facing hurdles in its path to recovery. As the cryptocurrency attempts to breach the $2,500 resistance zone, it must contend with resistance near $2,420 and the 50% Fib retracement level. A significant barrier lies at $2,500, with a bearish trend line forming on the hourly chart. Ethereum will need to surpass key resistance levels, including $2,540 and $2,680, to strive for a potential upward trend.

Resistance near $2,420 and 50% Fib retracement level
Key barriers at $2,500, $2,540, and $2,680 resistance levels
Possible upward movement above $2,800 and $3,000 resistance

Predicting a Further Decline in ETH

If Ethereum struggles to overcome the $2,500 resistance, it may face another downward spiral. Initial support is anticipated near $2,200, with a critical support zone at $2,120. A breach below $2,120 could pave the way for a descent to $2,050 and potentially $2,000. Further losses might drive the price towards the $1,920 support, signaling a challenging period for Ethereum’s valuation.

Initial support levels at $2,200 and $2,120
Possible decline towards $2,050 and $2,000 support
Critical support at $1,920

Technical Indicators

Key technical indicators for Ethereum’s price movement include:

Hourly MACD: Showing decreasing momentum in the bearish region
Hourly RSI: Below the 50 zone, indicating a bearish trend

Major Support Level: $2,120

Major Resistance Level: $2,500

Hot Take: Stay Vigilant in the Crypto Market

As Ethereum grapples with a significant price decline, it is crucial for crypto investors to remain cautious and observant of market movements. With key support and resistance levels in play, the future trajectory of ETH remains uncertain. Stay informed and monitor technical indicators to make informed decisions in the volatile crypto market.