Ethereum Price Encountering Downside Risks as Bears Gear Up for New Moves

Ethereum has begun a recovery wave above the $2,120 mark, currently consolidating above $2,140 but facing challenges in overcoming the $2,200 resistance.

Key Takeaways

Ethereum started a recovery above the $2,150 level.
It is currently trading above $2,120 and the 100-hourly Simple Moving Average.
A new bearish trend line has formed resistance at $2,175 on the hourly ETH/USD chart.
The price could decline further if it remains below the $2,205 resistance threshold.

Ethereum Price Struggles At Resistance

Ethereum (ETH) has initiated a recovery trend after staying above $2,050. While the price has managed to rise above key resistance levels, it now struggles within a challenging range. With bearish pressures evident, the cryptocurrency might face further declines if it fails to break the established resistance.

Analysis of Ethereum Price Trends

Ethereum's price began a recovery after stabilizing above $2,050, similar to the movements seen in Bitcoin. It climbed past the $2,080 and $2,120 resistance levels, successfully clearing the 38.2% Fibonacci retracement of the drop from $2,385 to $2,025. Nonetheless, selling pressure appears to be active beneath the $2,200 resistance.

At present, Ethereum is trading above $2,140, supported by the 100-hourly Simple Moving Average. If bulls maintain momentum above the $2,100 level, the price may attempt to rise once more. The immediate resistance exists around the $2,175 mark alongside the trend line.

The first significant resistance to watch is near $2,205, aligning with the 50% Fibonacci retracement level of the recent drop.

Ethereum Price Source: ETHUSD on TradingView.com

Should Ethereum manage to break through the $2,250 resistance, it could target the $2,300 resistance level. A successful breach above $2,300 could indicate further upward momentum, with possible gains leading Ether towards the $2,345 or even $2,365 resistance zones in the near future.

Potential for a Decline in Ethereum

If Ethereum cannot overcome the $2,175 resistance barrier, a new decline could begin. Initial downside support is set around the $2,120 level, while the first major support lies around $2,100.

A definitive drop below the $2,100 support might trigger a fall towards the $2,065 level. Should losses continue, Ethereum could approach the $2,020 region, with $2,000 serving as the main support threshold.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is losing traction in the bullish zone.
Hourly RSI: The RSI for ETH/USD is currently below the 50 mark.
Major Support Level: $2,065
Major Resistance Level: $2,175