Ethereum Price Continues to Slide—Where Is the Next Support?

Overview

Ethereum’s price has recently struggled to maintain stability, failing to stay above the $3,000 mark and experiencing further declines. Currently, ETH is consolidating its losses, with the potential for a recovery wave contingent on overcoming specific resistance levels.

Recent Price Movements

Ethereum’s price entered a downward trajectory after failing to sustain above $3,000, which has led to a decline below the $2,950 zone. The cryptocurrency is now trading below the $2,900 threshold, alongside the 100-hourly Simple Moving Average. A bearish trend line has formed, marking resistance at $2,920 on the hourly chart of ETH/USD.

The price has dipped significantly, with Ethereum recently falling to new weekly lows. After attempting to rally, ETH encountered difficulties above the $3,000 level, similar to the challenges faced by Bitcoin. The price eventually dropped below key levels, including $2,950 and $2,920, entering a bearish market phase. The decline continued as the bears pushed the price below $2,850, with a low recorded at $2,790.

Currently, Ethereum is consolidating losses well below the 23.6% Fibonacci retracement level of the downward move from a swing high of $3,175 to the recent low of $2,790. Trading below the $2,900 mark and the 100-hourly Simple Moving Average indicates a continued bearish sentiment in the market.

If Ethereum can initiate an upward movement, it may encounter resistance near the $2,880 level. The subsequent key resistance level is located near $2,920, coinciding with the bearish trend line. Should the price break above the $2,980 level, it might have the potential to rise toward the $3,030 resistance area. A successful breach of this region could signal further gains in the following days, possibly pushing Ether toward resistance zones of $3,120 or even $3,150.

Potential for Further Decline

Conversely, if Ethereum fails to surpass the $2,880 resistance, it could trigger another decline. Initial support on the downside is identified near the $2,800 level, with a major support zone at approximately $2,780. A decisive move below this support might lead to a further drop toward the $2,740 level, and continued losses could push the price down to the $2,625 area. The next key support is positioned at $2,550.

Technical Indicators

• Hourly MACD: The MACD for ETH/USD is showing increasing momentum in the bearish zone, indicating a potential continuation of the downward trend.
• Hourly RSI: The Relative Strength Index (RSI) for ETH/USD is currently below the 50 zone, reinforcing the bearish outlook.

From author

The current market dynamics for Ethereum underscore the challenges facing the cryptocurrency as it navigates through resistance and support levels. The failure to maintain the $3,000 threshold has catalyzed a series of declines, which may continue unless a decisive recovery is observed.

Impact on the crypto market

• Ethereum’s inability to hold above $3,000 reflects broader market sentiment and could influence investor confidence.
• The establishment of key support and resistance levels may guide trading strategies among market participants.
• Continued bearish momentum could lead to increased volatility as traders react to price movements around established thresholds.
• A potential recovery above critical resistance levels may invigorate buying interest and positively impact Ethereum’s market position.
• Overall, Ethereum’s price action may serve as a barometer for the performance of other cryptocurrencies within the market.