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Ethereum Price Slides 10% — Market Sentiment Turns Cautious
Ethereum’s price recently began a significant downturn, dropping below the critical $2,500 threshold. As it now grapples with this loss, Ethereum might aim for a recovery above the $2,250 resistance mark. Initially, the cryptocurrency plummeted beneath the $2,350 level, signaling a bearish shift in market sentiment. Currently, Ethereum trades under both the $2,350 mark and the 100-hourly Simple Moving Average, indicating potential further declines.
A crucial bearish trend line has formed, presenting resistance at $2,280 on the hourly ETH/USD chart (data sourced from Kraken). Should Ethereum manage to stabilize and exceed the $2,320 resistance zone, it may set the stage for a modest rebound.
Ethereum Eyes Potential Recovery Amid Market Hesitancy
After dipping below the $2,500 support similar to Bitcoin, Ethereum saw its value diminish across several thresholds, including $2,350 and $2,250. The downturn was so severe that prices dipped below $2,200, with Ethereum bottoming out around $2,120 before entering a consolidation phase.
Despite a slight recovery above the $2,200 level, the price climbed past the 23.6% Fibonacci retracement level of the recent descent from a $2,568 peak to a $2,114 low. Yet, Ethereum lingers below $2,300 and the crucial 100-hourly SMA, struggling to regain lost ground.
On the upside, Ethereum faces immediate resistance near $2,250. The next significant barrier stands near $2,340, aligned closely with the 50% Fibonacci retracement level of the recent significant drop. Should Ethereum convincingly breach the $2,400 resistance, it may approach the $2,500 level again, potentially signaling a resurgence in buyer interest.
Risks of Further Declines Loom
If Ethereum fails to overcome the $2,340 resistance, it risks another downturn. Initial support is found near the $2,200 level, with more robust support at $2,150. A decisive drop below this support could drive Ethereum’s price towards the $2,120 mark, and possibly further down to $2,050 in the near term. The critical $2,000 support level looms as a significant psychological barrier.
Technical Indicators Reflect Bearish Momentum
The Hourly MACD for ETH/USD is intensifying within the bearish zone, suggesting that bearish momentum might continue. Moreover, the Hourly RSI remains below the midpoint of 50, underscoring a lack of upward momentum.
Key Levels to Watch
– Major Support Level: $2,150
– Major Resistance Level: $2,340
As Ethereum navigates this volatile market phase, traders and investors are advised to monitor these technical levels closely, as they could dictate Ether’s short-term price trajectory in an increasingly cautious market environment.
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