Could a Bearish Trend Be Approaching?

The value of Ethereum took a severe downturn, plummeting below the $2,550 mark. If it remains over the $2,400 support level, ETH may potentially mount a comeback.

• Ethereum underwent a significant drop, falling beneath the $2,650 and $2,550 thresholds.
• Currently, the price hovers under $2,550 and the 100-hour Simple Moving Average.
• A critical declining trend line is evident, with a resistance point at $2,575 on the hourly ETH/USD chart (sourced from Kraken).
• The pair has the potential to kickstart a resurgence if it keeps above the $2,400 benchmark.

Ethereum’s Value Plummets by 10%

The Ethereum rate did not bounce back but instead intensified its drop beneath the $2,650 mark. ETH plummeted past the supportive levels at $2,550 and $2,500, similar to Bitcoin’s performance here. It even dipped briefly below the $2,400 level.

ETH established a low at $2,394 and is presently consolidating its losses. There was a slight resurgence above the $2,420 and $2,440 levels, reaching the 23.6% Fib retracement level from the recent downturn from a high of $2,820 to the low of $2,394.

The pricing of Ethereum is now below $2,550 and the 100-hourly Simple Moving Average. Should a recovery wave occur, the price may encounter resistance near $2,500.

The initial significant resistance lies close to the $2,550 level, alongside a critical bearish trend line with resistance at $2,575, displayed on the ETH/USD hourly chart. A successful push above $2,550 could propel Ether towards the $2,600 mark or even the 50% Fib retracement level taken from the shift from a $2,820 high to a $2,394 low.

The subsequent pivotal resistance is at about $2,660. Overcoming the $2,660 resistance could lead to an upward trend towards the $2,880 resistance area shortly.

Possibility of Further Declines for ETH?

In the event that Ethereum cannot surpass the $2,500 resistance, its downward trajectory could persist. The immediate support is located near the $2,420 mark, with a primary staunch support sitting at the $2,400 territory.

A definitive drop beneath the $2,400 support could push the value towards the $2,350 level, which may incite a bullish response. Further losses could steer the rate to the $2,220 support level in the subsequent period. The next substantial support lies at $2,150.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently accelerating in the bearish domain.

Hourly RSI – The RSI for ETH/USD is now under the 50 threshold.

Major Support Level – $2,400

Major Resistance Level – $2,550