Following a failed attempt to surpass $3,050, Ethereum price has experienced a significant decline, dropping by 10% and struggling to maintain support above $2,700.
- Unable to sustain above $2,880, Ethereum initiated a downward trend.
- The current price is below $2,800 and the 100-hourly Simple Moving Average.
- A bearish trend line is forming with resistance at $2,820 on the hourly chart of ETH/USD (data feed via Kraken).
- If the price remains above the $2,700 zone, there is a possibility of a new uptrend.
Ethereum Price Drops by 10%
After failing to hold above $2,880, Ethereum began a significant decline, similar to Bitcoin’s movement. The price fell below $2,820, entering a bearish territory.
The bears pushed the price below $2,750, reaching a low of $2,680. Currently, the price is displaying bearish signals below the 23.6% Fib retracement level from the recent high of $3,040 to the low of $2,680. Additionally, a bearish trend line with resistance at $2,820 is evident on the hourly chart of ETH/USD.
With Ethereum trading below $2,800 and the 100-hourly Simple Moving Average, a potential upward movement may be seen if the bulls hold above $2,700. Immediate resistance lies around $2,765, with key resistance at $2,820 and the trend line.
The next significant resistance levels are at $2,860 and the 50% Fib retracement level of the recent decline. A breakthrough above $2,860 could propel the price towards $2,900, potentially leading to further gains in the near future. In such a scenario, Ethereum may target the $3,000 zone, or even $3,050.
Possibility of Further Losses in ETH?
If Ethereum fails to surpass the $2,820 resistance, a new downtrend could commence. Initial support is seen near $2,700, with critical support at $2,680.
A breach below $2,680 may drive the price towards $2,620, potentially extending to the $2,550 region. The primary support level stands at $2,500.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is indicating bearish momentum.
Hourly RSI – The RSI for ETH/USD is currently below the 50 mark.
Major Support Level – $2,700
Major Resistance Level – $2,820