The Ethereum price is descending below the crucial $2,250 support level, placing ETH in jeopardy of further declines below the $2,120 support zone.
Despite attempts, Ethereum faced challenges in initiating an upward momentum beyond the $2,250 resistance.
At present, the price is positioned below both $2,250 and the 100-hourly Simple Moving Average.
A significant descending channel is taking shape, with resistance around $2,225 according to the hourly chart of ETH/USD (data feed via Kraken).
Should the price dip below the $2,120 support zone, there is a possibility that the pair could extend its downward trajectory.
Ethereum experiences a price setback.
Ethereum’s price made an attempt to rise above the $2,120 and $2,150 thresholds. It successfully surpassed the $2,200 level but encountered resistance from bears around the $2,250 mark, resulting in a decline reminiscent of Bitcoin’s movement.
The price dipped below the $2,200 support zone, breaking the 23.6% Fibonacci retracement level of the upward move from the $1,980 swing low to the $2,252 high.
Currently, Ethereum is trading beneath $2,250 and the 100-hourly Simple Moving Average. The hourly chart of ETH/USD indicates the formation of a significant descending channel, with resistance around $2,225. In the event of a renewed upward movement, the pair may encounter resistance near the $2,200 level.
The upcoming crucial resistance lies in the vicinity of the $2,225 level or the trend line within the channel. The primary obstacle remains at $2,250. A decisive breakthrough above the $2,250 zone has the potential to propel the price towards the $2,300 level, with subsequent resistance at $2,350. Further upward momentum could initiate a surge toward the $2,500 level.
Could Ethereum (ETH) Experience Further Declines?
If Ethereum struggles to surpass the $2,225 resistance, a continuation of the downward movement is possible. Initial support on the downside is anticipated near the $2,120 level or the 50% Fibonacci retracement level of the upward move from the $1,980 swing low to the $2,252 high.
The subsequent critical support level is at $2,045, with the primary support now situated around $2,000. A breach below $2,000 might trigger a significant downturn, potentially revisiting the $1,880 support. Further losses could prompt a test of the $1,820 support zone in the short term.
Technical Indicators:
- Hourly MACD: The MACD for ETH/USD is displaying increasing momentum in the bearish zone.
- Hourly RSI: The RSI for ETH/USD has now fallen below the 50 level.
Major Support Level: $2,120
Major Resistance Level: $2,225