Analyzing Ethereum’s Correction: Will ETH Drop Below $2000 Again?

Key Takeaways:

• Bearish Trend: Ethereum price faces a bearish trend, sliding from $2,130 towards a potential $1,920 support zone, currently trading below $2,060 and the 100-hourly Simple Moving Average.
• Resistance Challenges: Resistance at $2,040 impedes Ethereum price recovery, struggling to surpass crucial levels like $2,040 and $2,060.
• Price Points: Key resistance lies at $2,100, $2,135, $2,150, and $2,200, while failure to break $2,040 may prompt renewed downward momentum.
• Support Levels: Initial support at $2,000, followed by a critical level at $1,985; breach below $1,985 might push Ethereum price to $1,920, with further risks at $1,885 and potentially $1,820.
• Technical Signals: Hourly MACD and RSI indicate diminishing bullish momentum, with RSI below 50, signaling challenges for the immediate upward movement in ETH price.

Observations indicate a consistent decline in Ethereum price, currently positioned below the $2,060 mark and the 100-hourly Simple Moving Average. A prominent bearish trend line is visible on the hourly chart of ETH/USD via Kraken, demonstrating resistance levels near $2,040.

The recent downturn commenced after Ethereum’s struggle around the $2,130 mark, resulting in a descent below crucial support levels at $2,100 and $2,080, mirroring Bitcoin price facing a similar downturn. Ethereum price encountered a dip below the $2,000 support, settling briefly around $1,986 before initiating a phase of loss consolidation.

Additional Read: Bitcoin Price Prediction

ETH/USD | Source: Tradingview

During this period, Ethereum slightly recovered above $2,020, reaching levels above the 23.6% Fib retracement level from the recent decline (from the $2,132 high to the $1,986 low).

However, challenges persist for Ethereum’s upward movement, with resistance looming around the $2,040 mark, as indicated by the bearish trend line and the 50% Fib retracement level ($2,060) from the recent high to low swing.

Potential resistance points lie at $2,100, $2,135, $2,150, and $2,200. Surpassing these levels could initiate a rally targeting $2,250. Conversely, a failure to break the $2,040 resistance may prompt renewed downward movement.

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In a downturn, initial support is anticipated at the $2,000 level, followed by a crucial support level at $1,985. A breach below $1,985 might propel Ethereum toward the $1,920 support. The critical support barrier is $1,885, with further downside risks toward the $1,820 level if breached.

Technical indicators like the hourly MACD and RSI for ETH/USD signal a loss of bullish momentum, with the RSI dipping below the 50 levels.

The current bearish trend in ETH price indicates potential revisits to support levels, with resistance hurdles at key price points. The inability to breach resistances may prolong the downward momentum, while breakthroughs could pave the way for an upward rally. As the market unfolds, monitoring these critical levels will provide valuable insights into the possible future trajectory of Ethereum price.

Source: newsbtc.com