Ethereum (ETH) has recently dipped below the crucial $2,000 mark, facing significant headwinds as a broader crypto market rout intensifies. Despite a modest recovery attempt from its $1,744 low, the digital asset currently struggles to reclaim vital support levels, leaving investors pondering its immediate future.
Ethereum Faces Steep Decline Amid Market Turmoil
Ethereum’s price recently plummeted over 15%, mirroring broader market trends that saw it fail to sustain above the $2,200 threshold. This decline pushed ETH firmly into a bearish zone, trading consistently below the $2,000 mark and its 100-hourly Simple Moving Average. Aggressive selling pressure from bears drove the price as low as $1,744 before a slight rebound commenced, moving above the $1,850 level and the 23.6% Fibonacci retracement of its recent high-to-low swing.
Recovery Hopes and Critical Resistance Levels
As Ethereum attempts to solidify its recovery, it currently trades below $2,000 and the 100-hourly Simple Moving Average. Should bulls maintain control above $1,800, the price could aim for an increase. Immediate resistance is observed near $1,950, with the first key hurdle at $2,050, aligning with the 50% Fibonacci retracement. A major bearish trend line also presents stiff resistance around $2,200 on the hourly chart. A decisive breakthrough above this $2,200 barrier could signal a move towards $2,350, potentially extending gains to $2,550 or even $2,665 in the near term.
Persistent Downside Risks for ETH
However, the path to recovery remains precarious. If Ethereum fails to clear the $2,050 resistance, it could trigger a fresh wave of declines. Initial support on the downside is located near $1,850, with the first major support sitting at the $1,800 zone. A clear move below $1,800 would likely push the price towards $1,750. Further sustained losses might see ETH descending to the $1,720 region, with a critical ultimate support level identified at $1,680. Technical indicators, including the Hourly MACD, which shows increasing bearish momentum, and the Hourly RSI, positioned below the 50 mark, reinforce the cautious outlook.
