TA: Why Ethereum (ETH) Key Indicators Suggest Fresh Drop Below $2K
Ethereum failed to stay above $2,100 and it is now moving lower against the US Dollar. ETH price is likely to continue lower and it could even break $2,000.
- Ethereum started a fresh decline from well above the $2,200 support zone.
- The price is now trading below $2,100 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $2,100 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could decline heavily if there is a break below the $2,000 support zone in the near term.
Ethereum Price Is Gaining Bearish Pace
After struggling to stay above $2,250, ethereum started a fresh decline. ETH broke the $2,200 and $2,150 support levels to move into a short-term bearish zone.
The price gained pace below the $2,150 level and it even broke $2,120. There was a break below the 23.6% Fib retracement level of the upward move from the $1,718 swing low to $2,289 high. There was also a break below a major bullish trend line with support near $2,100 on the hourly chart of ETH/USD.
The pair is now trading below $2,100 and the 100 hourly simple moving average. An immediate support on the downside is near the $2,050 level. The first major support is near the $2,000 level.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the upward move from the $1,718 swing low to $2,289 high is near the $2,000 level. If there is a clear break below $2,000, the price could decline heavily. In the stated case, the price could dive towards the $1,850 level. The next major support on the downside is near the $1,700 level.
Fresh Increase in ETH?
If Ethereum stays above the $2,050 support zone or $2,000, it could start a fresh increase. An immediate resistance on the upside is near the $2,120 level and the 100 hourly SMA.
The main breakout resistance is now forming near the $2,150 and $2,160 levels. A close above the $2,160 level could start a major increase towards the $2,250 level or even $2,320 in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Major Support Level – $2,000
Major Resistance Level – $2,150
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