Ethereum Dives 15%, Why Close Below $2K Is The Key

Date:

Ethereum experienced bearish momentum when it traded below $2,000 against US Dollar. ETH was even trading below $2,000 at one point and continues to be vulnerable to further losses.

  • Ethereum experienced a new decline of below $2,100 and even $2,000.
  • The current price trades below $2,100 as well as the simple 100-hour moving average.
  • The hourly chart for ETH/USD showed a breaking below the key bullish trendline with support at $2,250 (data feed via Kraken).
  • A close below the $2,000 support could cause the pair to continue its downward movement.

Ethereum’s Price Hits $2K

Ethereum was unable to sustain the wave of recovery above $2,400. ETH began a new decline, trading below the $2320 support level.

On the hourly chart, ETH/USD saw a dip below a bullish trend line. Support was near $2250. The price of the pair fell below $2,200, $2,100, and $3,200 levels. The Ether price broke even the $2,000 support area and settled under the simple 100-hour moving average.

The price traded at $1,950 but is showing more signs of weakness. The price could face resistance at the $2,050 mark if there’s a recovery wave.

Also, the Fib retracement of the recent fall from $2.451 swing highs to $1.939 lows is at 23.6%. At the $2,000.150 level is where you will find major resistance. Now, the main resistance lies near $2,220.

Ethereum Price

Source: TradingView.com ETHUSD

Near $2,200 is the 50% Fib level that reflects the decline in price from $2,451 swing high and $1,939 low. If the price closes above $2,200 it could lead to a substantial increase. If the above is true, the resistance of $2,350 might be reached.

Are There More Losses in Ethereum?

Ethereum could move lower if it does not recover from the resistance at $2,200. Initial support is located near the $1940 zone.

Near the $1,880 support level is the next significant support. A daily closing below $2,000 could lead to further losses of $1,880. If this happens, then the price might fall to the $1,700 mark. Near the $1550 and $1500 levels, the nearest support level could be found in the immediate future.

Technical indicators

Minutely MACD – Now, the MACD of ETH/USD has gained momentum in the bearish area.

Hourly RSI – The RSI of ETH/USD is much lower than the 40 level.

Major Support Level – $1,880

Major Resistance Level – $2,200

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