Ethereum Price Bounce Looks Fragile: Is Another Selloff Brewing?

Ethereum's recent recovery attempt appears to be losing steam as the asset struggles to clear key resistance levels. Despite a brief bounce from the $2,075 zone, technical indicators suggest that the upward momentum is weak and a fresh decline could be on the horizon.

Hurdles at the $2,150 Resistance

After forming a base above $2,050, Ethereum (ETH) initiated a recovery wave that mirrored Bitcoin’s recent movements. While the price managed to surpass the 38.2% Fibonacci retracement level of the downward move from $2,197 to $2,075, it hit a significant wall near the $2,150 mark. Currently, ETH is trading below $2,120 and the 100-hour Simple Moving Average, signaling that bears remain firmly in control. A bearish trend line with resistance at $2,120 further complicates the recovery path for bulls.

Potential for Further Losses

The outlook remains precarious; if Ethereum fails to clear the $2,150 resistance zone, it likely faces a fresh round of selling. Initial support is established near $2,085, but a decisive move below the $2,075 level could trigger a steeper slide toward the $2,000 psychological region. Technical indicators support this cautious view, with the Hourly MACD gaining momentum in the bearish zone and the Hourly RSI dipping below the 50 mark.

Key Levels to Watch

For a bullish trend reversal, ETH must achieve a clear break above the $2,200 resistance. Success at this level could open the door for a rally toward $2,300 or even $2,315. Conversely, failure to maintain current support levels may see the price testing the $1,940 floor. Investors are advised to watch the $2,150 resistance and $2,050 support levels closely to determine the market's next major direction.