- Ethereum faced resistance at $2,075 and subsequently experienced a decline.
- It broke below $2,050 and a key bullish trend line at $2,040.
- Ethereum is currently trading below $2,050 and the 100-hourly Simple Moving Average.
Ethereum’s price encountered a significant hurdle when attempting to clear the $2,075 resistance zone, leading to a subsequent decline. The bears seized control, pushing ETH below the $2,050 level and initiating a corrective phase.
During this correction, ETH traded below the 50% Fibonacci retracement level of the recent upward move, stretching from the $1,986 swing low to the $2,076 high. Additionally, a key bullish trend line with support at $2,040 on the hourly chart of ETH/USD was breached, adding to the downside pressure.
Breaking Below Key Support Levels
As of now, Ethereum is trading below both $2,050 and the 100-hourly Simple Moving Average (SMA). However, it has found consolidation above the $2,020 support zone.
On the upside, Ethereum faces resistance around the $2,050 zone and the 100-hourly SMA. The first significant resistance level stands at $2,075, with the subsequent resistance at $2,090. A decisive move above $2,090 could propel the price toward the $2,130 resistance zone.
Looking further ahead, if Ethereum manages to surpass these resistance levels, it may aim for a move towards $2,200, followed by the $2,250 level. Substantial gains beyond these points could initiate a bullish wave targeting the $2,320 level.
However, if Ethereum fails to overcome the $2,050 resistance, it may continue its descent. Initial support on the downside lies at the $2,020 level, with $2,000 as the next critical support.
A downward break below $2,000 could trigger a sustained decline, with the key support zone now residing at $1,930. Further downside risks may lead to a move towards the $1,880 level in the near term.
Technical indicators, such as the hourly MACD and the Relative Strength Index (RSI), suggest that Ethereum’s momentum is waning in the bearish zone. The RSI has dipped below the 50 level, indicating a potential period of consolidation or further downside movement.
Ethereum’s recent struggle against resistance underscores the importance of key support and resistance levels in its price movements. Traders and investors are closely monitoring these levels as they gauge the cryptocurrency’s future trajectory.
