Ethereum’s price took a significant dive, dropping over 5% and falling below the $2,350 mark. This decline has put increased pressure on bullish traders, who now face the possibility of a further drop towards the $2,120 level.
The decline in Ethereum’s price began after it failed to surpass the $2,450 resistance level. Currently, the price is trading below both the $2,320 mark and the 100-hourly Simple Moving Average. Furthermore, there was a break below a crucial bullish trend line with support at $2,400 on the hourly chart of ETH/USD (data feed via Kraken).
For Ethereum to regain some momentum and initiate a recovery wave, it must overcome the resistance at $2,320 in the short term. However, if it fails to do so, another decline may be imminent. The initial support on the downside is positioned around $2,250, followed by a major support level near the $2,200 zone. In the event of further losses, Ethereum could reach the $2,120 support level, with the next key support residing at $2,050.
Technical indicators suggest a bearish trend for Ethereum. The hourly MACD for ETH/USD indicates increasing momentum in the bearish zone, while the hourly RSI has fallen below the 50 zone.
In summary, Ethereum’s price decline coupled with selling pressure indicates a challenging time for bullish traders, who will need to overcome resistance levels to initiate a recovery. However, if the resistance remains intact, the price might experience further downside movements.