The Ethereum price recently experienced a significant nosedive after failing to maintain its position above the $3,000 mark. This decline has left ETH down over 20%, forcing it to try to regain ground from the $2,000 zone. The downward trend began when Ethereum broke crucial support levels such as $2,800 and $2,650, signaling trouble ahead for the cryptocurrency.
Currently, Ethereum is trading below $2,500 and the 100-hourly Simple Moving Average, indicating a bearish momentum in the market. There is a key bearish trend line that has formed with resistance at $2,500 on the hourly chart of ETH/USD, adding further pressure on the cryptocurrency. The path to recovery seems challenging, with the pair needing to clear the $2,500 resistance zone to initiate a potential turnaround.
Despite the steep decline, there is still hope for Ethereum as it attempts to recover from the recent losses. If the cryptocurrency manages to surpass the $2,500 resistance level, it could signal the start of a recovery wave. However, the journey ahead is fraught with obstacles, including resistance near the $2,420 level and the 50% Fib retracement level. The first major hurdle remains at the $2,500 level, followed by additional resistance at $2,540 and $2,680 respectively.
On the flip side, failure to break above the $2,500 resistance could trigger another downward spiral for Ethereum. Initial support is anticipated near $2,200, with a major support level established at $2,120. A breach below $2,120 could pave the way for further declines towards $2,050 and potentially the $2,000 support level. The next significant support zone rests at $1,920, indicating crucial levels to watch for potential price movements.
Monitoring the technical indicators reveals a bearish sentiment in the market, with the hourly MACD for ETH/USD losing momentum in the bearish zone. Additionally, the hourly RSI has dipped below the 50 zone, underscoring the current challenges facing Ethereum as it navigates through a volatile market environment. Traders and investors are advised to exercise caution and closely monitor price movements as Ethereum charts its course in the coming days and weeks.
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