The Ethereum price has recently dipped to $2,100, sparking concerns of a potential downward thrust towards the $2,000 level. This decline mirrors the broader market trends observed in the crypto space, where ETH is grappling with substantial resistance levels.
Current Market Analysis
Ethereum has struggled to maintain stability above $2,250, leading to an extended decline similar to Bitcoin. The price fell below the critical $2,200 mark, entering a bearish zone. The recent low was recorded at $2,073, from where ETH is attempting a recovery.
Despite a move above $2,120, the price remains below the 23.6% Fibonacci retracement level of the decline from $3,040 to $2,073. Currently, Ethereum is trading below $2,200 and the 100-hourly Simple Moving Average.
Resistance and Support Levels
A major bearish trend line has formed, presenting resistance at $2,255. If bulls manage to sustain action above $2,100, a potential increase could be on the horizon. Immediate resistance is visible near the $2,200 level, with key resistance at $2,250 and further at $2,390.
Breaking beyond $2,390 could propel Ethereum toward $2,550, aligning with the 50% Fib retracement level. A successful breach of $2,550 might indicate further gains, with projections towards the $2,650 resistance zone.
Potential Downside Risks
Conversely, if Ethereum fails to overcome the $2,250 resistance, a fresh decline could ensue. Initial support is located around $2,100, with significant support at $2,075. A clear break below this level might lead Ethereum to the $2,000 region, with extended losses potentially pushing the price to the $1,880 support.
Technical indicators reflect a bearish sentiment, with the hourly MACD gaining momentum in the bearish zone and the RSI positioned below 50.
Expert Insights and Market Data
Analyzing market data, experts suggest careful monitoring of these resistance and support levels to gauge potential market movements. Traders are advised to stay informed and consider these indicators when making trading decisions.
