In the latest market developments, Ethereum has witnessed a substantial decline, testing the crucial $2,150 support level. Despite attempts at recovery, ETH struggles to regain ground and is poised to move towards the $2,000 support zone. The downtrend initiated with Ethereum’s fall below the $2,350 and $2,250 levels, trading currently under $2,250 and the 100-hourly Simple Moving Average.
Analyzing the hourly chart of ETH/USD via Kraken, a significant bearish trend line is taking shape, indicating resistance around $2,240. For a potential upward movement, the pair must overcome resistance levels at $2,240 and $2,280.
Remaining entrenched in a bearish trajectory below the pivotal $2,400 level, Ethereum has extended its losses, breaching the $2,250 support level akin to Bitcoin. The cryptocurrency even experienced a dip below the $2,000 mark, establishing a new weekly low near $2,165, currently consolidating losses.
Ethereum’s Recovery Path
While there was a minor uptick above $2,220, ETH faces obstacles at the $2,240 resistance level. Further challenges lie at $2,280, beyond which a path to recovery might open up. Notably, the $2,360 mark and the 61.8% Fib retracement level present significant hurdles for ETH’s ascent.
A decisive move above $2,360 could initiate a noteworthy increase, potentially propelling the price towards $2,415. Subsequent gains might even push Ethereum towards the $2,550 zone. However, failure to breach the $2,440 resistance may trigger another downward turn. Initial support lies at $2,200, with a critical support zone at $2,165. A breach below this level could propel Ethereum towards the $2,120 support, potentially leading to a further downturn with the $2,000 level coming into play.
Facing a minor uptick beyond the $2,220 mark, Ethereum confronts impediments at the $2,240 resistance level. Progressing beyond this point requires overcoming additional challenges at $2,280, as it marks a pivotal threshold for the cryptocurrency’s potential recovery. Of notable significance are the formidable obstacles presented by the $2,360 mark and the 61.8% Fib retracement level, acting as critical barriers that Ethereum must surmount to achieve an upward trajectory.