Ethereum’s price fell after falling below $3,000. ETH has fallen more than 20% and is now trying to recover from the $2,000 zone.
- Ethereum started a major decline below the USD 2,800 and USD 2,650 levels.
- The price is trading below $2,500 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a recovery wave if it breaks the $2,500 resistance zone.
Ethereum price takes a big hit
Ethereum price started a major decline after breaking the USD 3,000 support. ETH dragged Bitcoin down and traded below the $2,500 support. It fell by more than 20% and there was a sharp decline below the USD 2,200 level.
The price even dipped below $2,000 and tested $1,920. A low is formed at $1,911 and the price is now consolidating losses. There was a small recovery wave above the USD 2,200 level. The price broke the 23.6% Fib retracement level of the downward move from the $2,922 swing high to the $1,911 low.
The Ethereum price is now trading below $2,500 and the 100-hourly Simple Moving Average. If a steady recovery wave comes, the price could face resistance near the $2,420 level and the 50% Fib retracement level of the downward move from the $2,922 swing high to the $1,911 low.
The first major resistance is around the $2,500 level. There is also a major bearish trendline forming with resistance at $2,500 on the hourly chart of ETH/USD. The next major hurdle is near the USD 2,540 level. A close above the USD 2,540 level could send Ether towards the USD 2,680 resistance.
The next major resistance is near USD 2,800. An upside break above the USD 2,800 resistance could send the price higher towards the USD 3,000 resistance zone in the near term.
Another drop in ETH?
If Ethereum fails to clear the USD 2,500 resistance, it could trigger another decline. The initial downside support is near USD 2,200. The first major support is near the $2,120 zone.
A clear move below the USD 2,120 support could push the price towards USD 2,050. Any further losses could send the price towards the USD 2,000 support level in the near term. The next major support is at $1,920.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $2,120
Major resistance level – $2,500
