TA: Ethereum Resumes Decline, What Could Trigger Drop Below $2K
Ethereum remains in a bearish zone and it traded below $2,250 against the US Dollar. ETH price remains at a risk of more downsides below $2,000 in the near term.
- Ethereum extended its decline below the $2,250 and $2,150 levels.
- The price is now trading well below $2,250 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $2,220 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend its decline if the bulls fail to protect the key $2,000 support zone.
Ethereum Price Remains At Risk
Ethereum started a steady decline from well above $2,400, similar to bitcoin. ETH traded below the $2,250 and $2,120 support levels to move into a bearish zone.
There was also a break below the $2,100 support zone and a low was formed near $2,041. Recently, ether started a decent recovery and climbed above the $2,200 level. However, the price failed to clear the $2,250 and $2,280 resistance levels.
It is now trading well below $2,250 and the 100 hourly simple moving average. Ether resumed its decline and it traded below the $2,150 level. There was a clear break below the 50% Fib retracement level of the of the upward move from the $2,041 swing low to $2,276 high.
It is now trading near the $2,080 support level, and it is testing the 76.4% Fib retracement level of the of the upward move from the $2,041 swing low to $2,276 high.
Source: ETHUSD on TradingView.com
The first major resistance on the upside is near the $2,150 level. The main resistance is now forming near the $2,250 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $2,220 on the hourly chart of ETH/USD.
More Losses in ETH?
If Ethereum fails to clear the $2,150 and $2,250 resistance levels, it could continue to move down. An initial support on the downside is near the $2,050 level.
The main breakdown support is now forming near the $2,000 level. A downside break below the recent low and the $2,000 support level may possibly spark a major decline. In the stated case, ether price is likely to decline towards $1,850 in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently well below the 50 level.
Major Support Level – $2,000
Major Resistance Level – $2,250