Ethereum Price Faces Resistance, Risks Further Decline

Ethereum's price has dipped below $2,420 and $2,300. Currently, it is trying to recover from a low of $2,150 but encounters significant obstacles near the $2,365 level.

Key Takeaways

Ethereum's price has struggled to maintain levels above $2,350, leading to a new downturn.
It is trading below $2,350 and has crossed the 100-hourly Simple Moving Average.
A significant bearish trend line has formed, presenting resistance at $2,350 on the hourly chart (data from Kraken).
If Ethereum remains under the $2,400 mark, further declines could follow.

Ethereum Price Struggles At Resistance

Ethereum Price Faces Another Decline

Ethereum has not been able to maintain its price above $2,500 and has consequently entered a bearish trend, similar to Bitcoin. The ETH price has dipped below $2,420 and has entered a bearish territory. The sellers have pushed the price down below $2,200, marking a low of $2,155. Currently, ETH is attempting a recovery, having moved above $2,250 and testing the 23.6% Fibonacci retracement level from the recent decline between the $3,040 high and the $2,155 low.

Nonetheless, sellers are still active around the $2,365 level. Additionally, a crucial bearish trend line is forming with resistance at $2,350 on the hourly ETH/USD chart. Ethereum is trading below both the $2,350 level and the 100-hourly Simple Moving Average.

If buyers can maintain their position above $2,250, there is potential for a price increase. Immediate resistance is near $2,350, with the first significant resistance at $2,365 and the next major resistance level at $2,450. A definitive move above $2,450 could drive the price to the $2,600 resistance or the 50% Fibonacci retracement level from the recent decline.

Ethereum Price Source: ETHUSD on TradingView.com

A successful breakout above the $2,600 level could indicate potential gains in the following days, with Ether possibly rising towards the resistance zones of $2,700 or even $2,720 in the near future.

Potential for Another Decline in ETH?

If Ethereum is unable to overcome the $2,365 resistance level, it may experience another decline. Immediate support on the downside is around $2,250, with significant support located at the $2,220 zone.

If Ethereum drops below the $2,220 support, it could lead the price down to the $2,150 support level. Further losses may push it towards the $2,120 region, with the main support level being at $2,000.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is gaining strength in the bearish region.
Hourly RSI: The RSI for ETH/USD is currently below the 50 zone.
Major Support Level: $2,220
Major Resistance Level: $2,365