The cost of Ethereum plunged significantly when it fell beneath $3,000. Currently, Ethereum has dropped more than 20%, and it’s trying to regain its footing above the $2,000 level.
- Ethereum started a major decline below the $2,800 and $2,650 levels.
The price is trading below $2,500 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance at $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a recovery wave if it clears the $2,500 resistance zone.
Ethereum Price Takes Major Hit
The cost of Ethereum began a significant drop following its break of the $3,000 support barrier. This movement pulled Bitcoin down as well, causing it to trade beneath the $2,500 support. It fell by more than 20% and experienced a steep decline below the $2,200 mark.
Initially, the cost dropped beneath $2,000 and touched $1,920, forming a new low at $1,911. Currently, it’s holding steady amidst consolidation. A slight rebound occurred above the $2,200 mark. The price surpassed the 23.6% Fibonacci retracement threshold, which is a significant level in the downward trend from the peak of $2,922 to the trough at $1,911.
Currently, Ethereum’s price is trading below the $2,500 mark and its 100-hour moving average. If a sustained upward trend occurs, the price may encounter resistance around the $2,420 point, which also coincides with the 50% Fibonacci retracement level of the downward journey from the peak at $2,922 to the trough at $1,911.
Approaching the $2,500 mark, we encounter a significant obstacle. Additionally, a strong bearish trend line is emerging, with resistance at $2,500 on the hourly chart of ETH/USD. If we manage to surpass the $2,540 level in our journey, it could propel Ether towards the potential resistance at $2,680.
As a crypto investor, I’m keeping my eye on an important resistance level sitting around $2,800. If we manage to push past this barrier, it could potentially propel the price upward, aiming for the $3,000 resistance area in the short term.
Another Decline In ETH?
Should Ethereum not manage to surpass the $2,500 barrier, it might initiate a new drop. An initial floor can be found around $2,200, while the primary support lies approximately at the $2,120 level.
If the price falls significantly below $2,120, it could potentially slide down to around $2,050. Further declines may drive the price towards the short-term support at $2,000. The significant support level lies at $1,920 in the upcoming period.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $2,120
Major Resistance Level – $2,500
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2024-08-05 08:10