Ethereum (ETH) is facing a significant downturn, following its recent struggle to surpass the $2,450 resistance mark. The cryptocurrency has seen a sharper decline compared to Bitcoin, breaking crucial supports and falling below the $2,400 level.
On the hourly chart for ETH/USD, Ethereum has breached a critical bullish trend line with support at $2,400. This move triggered a downward spiral, pushing ETH’s price down over 5% to form a low of $2,253. Currently, Ethereum is consolidating its losses, trading below the $2,320 mark and the 100-hourly Simple Moving Average (SMA).
Resistance And Support Levels
The immediate upside resistance for Ethereum is hovering around the $2,320 level. A sustained move above this threshold could potentially drive the price toward the $2,360 resistance. The next significant resistance lies near $2,385, which aligns with the 61.8% Fibonacci retracement level of the recent downtrend from $2,465 to $2,253. Should ETH break through this barrier, a further ascent towards the $2,450 resistance zone may be on the horizon.
Conversely, if Ethereum fails to overcome the $2,320 resistance, it risks further declines. The initial support is positioned around $2,250, with the first major support level at $2,200. A clear drop below $2,200 could see Ethereum’s price plunging to $2,150, and potentially even testing the $2,120 support level. Prolonged losses could further push ETH towards the $2,050 mark.
Also Read: Ethereum Price Stagnates Below $2,400 As Daily Revenue Plummets To May 2020 Levels
Market Sentiment and Outlook
The current technical indicators suggest a cautious outlook for Ethereum. With the price trading below key moving averages and Fibonacci levels, traders and investors are closely monitoring the $2,320 resistance and the potential support zones. The market sentiment remains cautious as ETH navigates through these pivotal levels.
As Ethereum continues to consolidate, the focus will be on whether it can reclaim lost ground or face more significant setbacks. The coming days will be crucial in determining Ethereum’s short-term trajectory and overall market stability.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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