Ethereum has recently faced a challenging period, extending its decline below critical price points and signalling potential further losses. While the cryptocurrency attempts a rebound from its recent lows, significant resistance levels currently impede a substantial recovery, keeping traders on edge.
Ethereum Price Eyes Further Downturn Amid Stiff Resistance
Ethereum's price trajectory has been largely bearish, failing to maintain positions above the $2,500 mark and mirroring losses seen in other major cryptocurrencies like Bitcoin. The digital asset plummeted below $2,420 and $2,300, establishing a new low at $2,155. Despite a modest recovery attempt above $2,250, ETH now grapples with formidable resistance. A major bearish trend line is forming around $2,350 on the hourly chart, exacerbated by the price trading consistently below both $2,350 and the 100-hourly Simple Moving Average. Key resistance points include $2,350, followed by $2,365, and a crucial hurdle at $2,450. A decisive break above $2,450 would be necessary to push ETH towards the $2,600 resistance or the 50% Fibonacci retracement level of its recent significant decline.
Critical Support Levels and Bearish Indicators
Should Ethereum fail to surmount the $2,365 resistance, the market anticipates a renewed decline. Immediate support lies near $2,250, with the first major support zone identified around $2,220. A breach below this $2,220 support could trigger a drop towards $2,150, potentially extending losses to the $2,120 region. The overarching bearish sentiment is underscored by technical indicators: the Hourly MACD is gaining momentum in the bearish zone, and the Hourly RSI is holding below the 50 mark, reinforcing the probability of continued downward pressure. The ultimate line of defense for buyers stands at the $2,000 level.
