The price of Ethereum plummeted and peaked below $2,000 on Kraken. ETH is now recovering above the USD 2,200 level, but the bears could be active around USD 2,300.
- Ethereum started a big decline and plunged below the $2,200 support.
- The price is trading below $2,300 and the 100-hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance near $2,300 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if there is a clear move above $2,290 and $2,300.
Ethereum price plunges
Ethereum price struggled to move above the USD 2,400 resistance zone. ETH also started a big decline, just like Bitcoin, breaking the USD 2,200 support zone.
There was a sharp decline and the price even peaked below the $2,000 support zone. A new yearly low was formed around $1,860 and the price is now recovering losses. There was a decent rise above the USD 2,000 and USD 2,080 resistance levels.
The price climbed above the 50% Fib retracement level of the downward move from the $2,430 swing high to the $1,860 low. However, Ethereum is still below $2,300 and the 100-hourly Simple Moving Average.
On the upside, the price is facing resistance around the $2,290 level. The first major resistance is now near $2,300. There is also a connecting bearish trendline forming with resistance around $2,300 on the hourly chart of ETH/USD. The trendline is close to the 76.4% Fib retracement level of the downward move from the $2,430 swing high to the $1,860 low.
Source: ETHUSD on TradingView.com
A close above the USD 2,300 resistance could send the price towards USD 2,400. The next major resistance is near USD 2,440. If there is a clear move above USD 2,400, there could be a drift towards USD 2,500. The next resistance is at $2,500, above which Ethereum could rise and test the $2,620 zone.
New drop in ETH?
If Ethereum fails to clear the USD 2,300 resistance, it could trigger another decline. The initial downside support is near the $2,200 level.
The first major support could be the $2,080 zone. A downside break and a close below $2,080 could trigger another steady decline. In the said case, Ether could test the $2,000 support. Any further losses could send the price towards the USD 1,860 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is regaining momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 level.
Major support level – $2,180
Major resistance level – $2,300
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