Ethereum price initiated a steep decline below the $2,350 zone. The cryptocurrency found support at $2,000 and now faces significant technical hurdles in its recovery attempt.
ETH broke below the $2,320 support zone in a decisive move downward. The price currently trades below both the $2,220 level and the 100-hourly Simple Moving Average, signaling bearish control of the market.
Technical analysis shows a break above a connecting bearish trend line with resistance at $2,080 on the hourly chart of ETH/USD. This represents a minor bullish development amid the broader downtrend.
For any meaningful recovery to begin, Ethereum must clear both the $2,230 and $2,275 resistance levels. These price points represent critical barriers to any upward momentum.
Ethereum's descent began from the $2,550 resistance zone, mirroring Bitcoin's recent performance. ETH gained bearish momentum after breaking below key support levels at $2,420 and $2,350.
The downward movement pushed below the $2,220 support zone and the 100-hourly Simple Moving Average. This culminated in a test of the psychologically important $2,000 level, with a low forming precisely at $2,003. The price is now attempting to recover above the 23.6% Fibonacci retracement level of the downward move from the $2,550 swing high to the $2,003 low.
On the upside, immediate resistance appears near $2,220. The first major resistance sits at approximately $2,275, coinciding with the 50% Fibonacci retracement level of the recent downward move.
Should Ethereum successfully break above $2,275, it could target the $2,350 resistance next. Clearing this level might trigger further gains, potentially pushing ETH toward $2,450 or even $2,500 in the near term.
If Ethereum fails to overcome the $2,275 resistance, another decline becomes likely. Initial support exists near $2,130, with major support at $2,080. A decisive break below $2,080 could send the price toward $2,020. Further selling pressure might test the $2,000 support level again. The next key support level below $2,000 sits at $1,880.
Technical indicators show mixed signals. The hourly MACD for ETH/USD is losing momentum in the bearish zone. The hourly RSI currently trades below the 50 zone, suggesting bears maintain an advantage.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.
