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Ethereum Price Slides 10% — Market Sentiment Turns Cautious
Ethereum price has witnessed a significant drop, plunging below the critical $2,500 support zone. This fresh decline has led the cryptocurrency to consolidate losses, with potential recovery efforts eyeing the $2,250 resistance level. Initially, Ethereum experienced a downturn from the $2,350 threshold, positioning itself beneath this mark and the 100-hourly Simple Moving Average, signaling a bearish trend.
A key bearish trend line has emerged, showing resistance near $2,280 on the hourly chart of ETH/USD, based on data from Kraken. If Ethereum manages to breach the $2,320 resistance zone shortly, it could potentially trigger a fresh increase. However, the prevailing market conditions hint at a cautious sentiment among investors.
As Ethereum mirrored Bitcoin’s downfall, it broke below not only the $2,350 and $2,250 levels but also dipped under the $2,200 mark. The cryptocurrency then tested the $2,120 area, entering a phase of consolidation. Despite a slight recovery above $2,200, which saw Ethereum climb past the 23.6% Fibonacci retracement level of the recent fall from a high of $2,568 to a low of $2,114, it continues to trade below $2,300 and the 100-hourly SMA.
Looking upwards, Ethereum faces initial resistance near $2,250. The next significant resistance lies around $2,340, aligning closely with the 50% Fib retracement level of the noted downward trajectory. A decisive climb above the $2,400 mark could propel Ethereum towards the $2,500 level again, potentially extending gains.
Conversely, should Ethereum fail to surpass the $2,340 resistance, it might face a new decline. Immediate support is found near the $2,200 level, with more substantial support at $2,150. A breach below this could lead to further drops towards the $2,120 support and, if the downtrend persists, potentially down to the $2,050 level in the near term. The crucial support to watch would be at the $2,000 threshold.
Technical Indicators Insight:
– Hourly MACD: Currently, the MACD for ETH/USD is intensifying within the bearish zone.
– Hourly RSI: The RSI for ETH/USD remains below the 50 level, underscoring the ongoing bearish momentum.
Investors and traders are advised to monitor these levels closely as Ethereum attempts to navigate through these turbulent market conditions. The ability to break above key resistances or a failure to hold crucial supports could significantly influence Ethereum’s price trajectory in the coming days.
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