Ethereum (ETH) dropped below the $2,800 level on Monday as traders watched technical indicators signal continued bearish momentum with a key resistance barrier forming at $2,920.
What Happened: ETH Tests Critical Support
The second-largest cryptocurrency by market capitalization declined from its recent swing high of $3,067 to test lows near $2,784.
ETH is now trading below its 100-hourly Simple Moving Average. A bearish trend line has formed with resistance at $2,920 on the ETH/USD pair.
The token found temporary support after touching $2,800, consolidating above the 23.6% Fibonacci retracement level of its recent downward move. Immediate resistance sits at $2,920, with the next major barrier at $2,960, corresponding to the 61.8% Fib retracement level.
A break above $3,000 could push prices toward $3,065, while failure to clear $2,920 may trigger another decline toward support at $2,780 or $2,720. The main downside target remains $2,650.
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Why It Matters: Bearish Signals Dominate
Technical indicators paint a cautious picture for ETH holders.
The hourly MACD is losing momentum in bearish territory, while the RSI has fallen below the 50 zone. Both readings suggest sellers maintain control of price action in the near term.
Bulls must defend the $2,800 support zone to prevent deeper losses.
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