Ethereum Price Cracks $2,000, Opening Door To Deeper Selloff

Overview

Ethereum’s price has recently experienced a decline, breaking below the $2,000 mark. This movement signals a potential further drop, with the cryptocurrency consolidating at risk of falling below $1,950 as it struggles to maintain upward momentum.

Recent Price Movements

Ethereum’s price began a new decline after failing to sustain levels above $2,050. It has since traded below both the $2,020 and $2,000 thresholds, entering what is classified as a bearish zone. The price action reflects a broader trend, as Ethereum mimics Bitcoin’s recent performance.

The cryptocurrency is currently trading below the 100-hourly Simple Moving Average, indicating a weakening trend. A bearish trend line has formed, with resistance identified at the $1,980 level on the hourly chart of ETH/USD. If Ethereum remains under the $2,020 zone, it may initiate another decline.

Despite the bearish sentiment, there was notable buying activity near the $1,900 level. If buyers remain active above this level, there is potential for a price increase. Immediate resistance is observed around the $1,960 mark, along with the aforementioned trend line. The first key resistance remains at $2,000, followed by a significant level at $2,020.

In the event of a clear breakthrough above $2,020, Ethereum could see an upward movement toward the $2,165 resistance area. Should this upward trajectory continue, it might lead to prices reaching the $2,250 or even $2,280 levels in the near term.

Potential for Further Losses

Conversely, if Ethereum fails to overcome the $2,000 resistance, it could initiate a fresh decline. Initial support on the downside is positioned near the $1,920 level, while a major support area lies around $1,900, coinciding with the 61.8% Fibonacci retracement level of the upward move from the $1,745 swing low to the $2,169 high.

A significant drop below the $1,850 support could lead the price toward the $1,820 support level. Continued losses might further push the price down to the $1,750 region, with a critical support level identified at $1,720.

Technical Indicators

• Hourly MACD: The MACD for ETH/USD is gaining momentum in the bearish zone, indicating selling pressure.
• Hourly RSI: The RSI for ETH/USD is currently below the 50 zone, suggesting a bearish trend.

Major Support and Resistance Levels

• Major Support Level: $1,900
• Major Resistance Level: $2,020

From author

The current price action of Ethereum highlights the ongoing volatility in the cryptocurrency market. The ability of Ethereum to maintain support levels will be crucial in determining its short-term trajectory. Observing how the market responds to key resistance and support levels can provide insights into broader market sentiment.

Impact on the crypto market

• Ethereum’s decline below $2,000 may influence investor sentiment across the wider cryptocurrency market.
• The inability to sustain above critical support levels could lead to increased bearish momentum.
• A sustained decline in Ethereum may impact Bitcoin and other cryptocurrencies, potentially causing a ripple effect.
• Market participants will be closely watching the $1,900 and $2,020 levels for potential trading signals.
• The bearish indicators may lead to cautious trading strategies among investors and traders in the short term.