Ethereum Price Dumps To $2,700, Bulls Scramble To Defend Support

Overview

Ethereum has recently experienced a significant decline in price, dropping after failing to surpass a key resistance level. Currently, the price is struggling to maintain its position above a critical support area, which has raised concerns among traders and investors.

Price Decline and Support Levels

Ethereum price started a major decline after it was unable to clear the $3,050 resistance level. Following this failure, ETH has seen a decrease of 10%, with the price now hovering near the $2,700 support level. The decline began when Ethereum could not maintain stability above $2,880, which led to a fresh downturn. The current trading price is below $2,800 and the 100-hourly Simple Moving Average, indicating a bearish trend.

A steep bearish trend line is forming with resistance positioned at $2,820 on the hourly chart of ETH/USD. The price has dipped below $2,750, reaching a low of $2,680. At this point, it is showing signs of weakness, trading below the 23.6% Fibonacci retracement level of the recent decline from a swing high of $3,040 down to the low of $2,680.

For Ethereum to initiate a recovery, it needs to stay above the $2,700 zone. Immediate resistance is noted around the $2,765 level, while the first key resistance is near $2,820, coinciding with the bearish trend line. The next significant resistance level is around $2,860, which aligns with the 50% Fibonacci retracement level of the recent decline.

If Ethereum manages to break above the $2,860 resistance, it could potentially move towards the $2,900 resistance level. A further upward movement beyond this point might indicate a chance for gains towards the $3,000 resistance zone or even toward the $3,050 level.

Potential for Further Losses

Conversely, if Ethereum fails to overcome the $2,820 resistance, it may trigger another round of declines. The initial support on the downside is located near the $2,700 level, while the first major support area is near $2,680. A clear move below this support could lead to a decline towards the $2,620 support level. Further losses could push the price down to the $2,550 region, with the main support potentially resting at $2,500.

Technical Indicators

• Hourly MACD: The MACD for ETH/USD is gaining momentum in the bearish zone.
• Hourly RSI: The RSI for ETH/USD is currently below the 50 zone.

From author

The recent price activity of Ethereum highlights the volatility and uncertainty prevalent in the cryptocurrency market. The struggle to maintain key support levels could have implications for traders and investors, especially in a market characterized by rapid price fluctuations. The trading patterns observed indicate a critical juncture for Ethereum, where both bullish and bearish sentiments are in play.

Impact on the crypto market

• Ethereum’s decline could influence overall market sentiment, particularly among altcoins.
• Traders may become more cautious, leading to reduced trading volumes and liquidity.
• A failure to hold the $2,700 support could trigger sell-offs, affecting market stability.
• Potential recovery above resistance levels may attract renewed interest from bullish traders.
• The current price action may set the tone for future market trends and investor strategies.