Ethereum, the world’s second-largest cryptocurrency by market capitalization, is navigating stormy waters as its price has begun a fresh decline from the $2,350 resistance zone. As it stands, ETH is currently consolidating losses and may potentially extend further losses toward the ominous $2,000 support level.
Notably, Ethereum is grappling with an uptick in selling pressure below the $2,350 zone. The digital currency is trading below the $2,250 mark and the 100-hourly Simple Moving Average (SMA) — a key indicator used by traders to determine the overall market trend. Adding more weight to the bearish view is a significant bearish trend line forming with resistance at $2,260 on the hourly chart of ETH/USD, according to data from Kraken.
However, there is a glimmer of hope for the bulls. If ETH manages to settle above the $2,250 and $2,350 resistance levels, it could spark a decent recovery wave.
Unfortunately, Ethereum’s recent performance has been less than stellar. After failing to breach the $2,450 resistance zone, ETH mirrored Bitcoin’s decline and started a fresh downward move. The price plummeted over 5% and even broke through the $2,220 support zone. A low was formed at $2,123, and ETH is now consolidating losses below the 23.6% Fibonacci retracement level of the downward wave from the $2,520 swing high to the $2,123 low.
On the upside, the price seems to be stalling near the $2,220 level. The first significant resistance is near the $2,250 level, and the main resistance is forming near $2,350. A clear break above the $2,360 resistance could propel the price towards the $2,450 resistance. If it successfully crosses the $2,450 resistance, we might see more gains in the following sessions, with Ether potentially rising towards the $2,500 or even $2,550 resistance zone.
Nonetheless, if Ethereum fails to clear the $2,250 resistance, it could trigger another decline. Initial support on the downside is near the $2,120 level, followed by the major support near the $2,050 zone. Any further losses could see the price drifting towards the $2,000, $1,880, and even $1,750 support levels.
On the technical front, the Moving Average Convergence Divergence (MACD) for ETH/USD is gaining momentum in the bearish zone. The Relative Strength Index (RSI), another momentum oscillator, is now below the 50 zone, indicating bearish momentum.
As the crypto market remains highly volatile, investors are urged to exercise prudence. The major support level to watch is $2,120, and the major resistance level is $2,260.
