ETH Value Continues Downward Spiral, Threatens to Shatter Key $2,000 Threshold
The Ethereum price has been struggling to maintain its footing, plummeting below the crucial $2,120 threshold and subsequently extending its downward trajectory. Currently, the cryptocurrency is grappling with the challenge of staying afloat above $2,040, and if this level is breached, the price may continue to slide in the short term.
A fresh downturn commenced when Ethereum's price plummeted from the $2,150 zone, with the cryptocurrency now trading beneath the $2,120 mark and the 100-hour Simple Moving Average. A significant development was the breach of a bullish trend line, which had provided support at $2,075 on the $ETH/USD hourly chart, as per data from Kraken. If the price remains below the $2,120 resistance level, it may trigger a fresh decline.
The Ethereum price has experienced a further downturn, mirroring the decline of Bitcoin, as it failed to sustain its upward momentum above $2,120. The price dropped below the $2,075 and $2,050 thresholds, entering a bearish territory. The hourly chart of $ETH/USD revealed a breach of the bullish trend line, which had support at $2,075, with the price touching a low of $2,016. Although the price has recovered some of its losses and risen above the 23.6% Fibonacci retracement level of the downward move from $2,167 to $2,016, the bears have maintained their grip near the $2,075 resistance zone.
Presently, the Ethereum price is trading below $2,065 and the 100-hour Simple Moving Average. If the bulls can maintain their position above $2,020, the price may attempt to surge again, with immediate resistance anticipated near the $2,075 level. According to the ETHUSD chart on TradingView.com, the first significant resistance is situated near the $2,100 level, coinciding with the 50% Fibonacci retracement level of the downward move from $2,167 to $2,016. The next major resistance is positioned near the $2,120 level, and a decisive break above this level could propel the price toward the $2,150 resistance. If the price breaches the $2,150 threshold, it may lead to further gains in the coming days, potentially pushing Ethereum toward the $2,220 resistance zone or even $2,250.
Conversely, if Ethereum fails to overcome the $2,075 resistance, it may embark on a fresh decline. The initial support on the downside is located near the $2,020 level, while the first major support is situated near the $2,000 zone. A clear break below the $2,000 support may push the price toward the $1,980 support, and any additional losses could send the price plummeting toward the $1,965 region. The primary support level is $1,920.
From a technical perspective, the hourly MACD for $ETH/USD is gaining momentum in the bearish zone, while the hourly RSI is currently below the 50 zone. The major support level is $2,020, and the major resistance level is $2,120.