Ethereum has experienced a significant decline, with its price dropping over 5% and trading below the $2,350 level. This downturn indicates a potential increase in selling pressure, raising concerns that the cryptocurrency could further slide to the level of $2,120.
The recent drop can be traced back to Ethereum ’s inability to surpass the resistance level of $2,450. Following this failure, the price plummeted, breaking through key supports, including a critical bullish trend line at $2,400. Currently, Ethereum is trading under $2,320 and the 100-hourly Simple Moving Average, which suggests a bearish outlook in the short term. A recent low was recorded at $2,253, and the price appears to be consolidating losses.
In terms of resistance, the immediate obstacle lies near the $2,320 level. If Ethereum can close above this level, it could pave the way for a recovery, potentially pushing prices toward the $2,360 zone. Further resistance levels are identified at $2,385, which corresponds with the 61.8% Fibonacci retracement of the previous decline. Surpassing $2,385 might trigger more bullish momentum, allowing Ether to target the $2,450 resistance zone.
However, if Ethereum fails to breach the $2,320 resistance, further declines may be imminent. Initial support is situated around $2,250, followed closely by a significant support level at $2,200. A decisive move below the $2,200 threshold could bring about a decline to $2,150, while continued losses could see prices head towards the $2,120 support. The technical indicators reflect a bearish sentiment, with the MACD gaining momentum in the negative territory and the Relative Strength Index trending below the neutral zone.
