Ethereum's Price Plunges to $2,800 Amidst Mounting Downside Pressure Ethereum (ETH) has experienced significant losses, dipping below the crucial $2,865 support zone and currently consolidating around $2,800. This downturn has intensified fears of further declines, as the cryptocurrency struggles to maintain its footing above key technical levels, raising questions about its immediate recovery prospects.
Deepening Bearish Trends and Key Support Levels
The recent price action for Ethereum indicates a prevailing bearish sentiment in the market. ETH failed to hold above the $2,950 mark, leading to an extended decline that saw its value fall below $2,880 and subsequently $2,865. The cryptocurrency is now trading under the $2,900 threshold and below its 100-hourly Simple Moving Average, signaling a strong bearish momentum. A notable bearish trend line is also forming on the hourly chart, with significant resistance identified at $2,920. While a minor bounce occurred above the 23.6% Fibonacci retracement level of a recent downtrend, bulls need to defend the $2,800 zone to prevent further capitulation.
Road to Recovery or Further Descent?
For Ethereum to initiate a recovery, it must decisively clear the immediate resistance at $2,920. Further upside momentum could be found near the $2,960 level, which aligns with the 61.8% Fibonacci retracement of the recent swing high to low. A sustained move above the $3,000 resistance could propel ETH towards the $3,065 and potentially $3,120 to $3,150 resistance zones. However, if ETH fails to breach the $2,920 resistance, a fresh wave of selling pressure could drive the price lower. Initial downside support is seen around $2,840, with a major support level at $2,800. A break below this critical psychological level could lead to a test of $2,780, $2,720, and eventually the primary support at $2,650. Technical indicators like the Hourly MACD are losing bullish momentum in the bearish zone, and the Hourly RSI is currently below the 50 mark, reinforcing the prevailing pessimistic outlook.
