Ethereum Struggles to Break Resistance, Potential for Decline

The Ethereum price is facing difficulties in overcoming the $2,300 resistance area. ETH is displaying some bearish indicators and could potentially drop towards the $2,080 support level.

Ethereum price shows bearish signs, possible 5% drop ahead

💥 Ethereum price is struggling to clear the $2,300 resistance zone 💥. Despite attempts to surpass this hurdle, ETH is displaying bearish signs and may decline towards the $2,080 support level.

💡 Reaching for the Stars

Like Bitcoin, Ethereum made a valiant effort to soar above the $2,200 level. It even managed to climb past $2,250 and $2,260. However, the bears were waiting at $2,300 along with the 100-hourly Simple Moving Average.

🐻 The bears’ fierceness caused a bearish reaction, with the price dropping below $2,250. The downward movement went as far as breaking the 23.6% Fib retracement level of the recent upward wave, which spanned from the $1,860 swing low to the $2,289 high.

🧱 A Tough Barrier to Break

As of now, Ethereum is trading below $2,260 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a connecting bearish trend line is forming, with resistance near $2,240.

So, what happens next? Will Ethereum break free or remain trapped?

If the price makes another attempt to rise, it will likely face resistance near the $2,250 level and the aforementioned trend line. The first major resistance point lies around $2,280, with the next significant hurdle at $2,300.

Ethereum Price Source: ETHUSD on TradingView.com

✨ However, a close above the $2,300 resistance could set Ethereum on a positive trajectory. The next crucial resistance is around $2,400, and if the bulls successfully breach that level, a rally towards $2,500 may be imminent. And who knows, with enough momentum, the price might even knock on the $2,620 zone’s door.

📉 What if Things Take a Turn for the Worse?

If Ethereum fails to break the $2,250 resistance, it’s likely to initiate a fresh decline. The first support in place is near the $2,120 level.

🔍 On a larger scale, the $2,080 zone or the 50% Fib retracement level of the previous upward wave could serve as a key support level. A breakdown below $2,080, accompanied by a close below that mark, might trigger a strong bearish movement. In such a scenario, Ether could test the $2,020 support level, and further losses may push the price towards $1,960.

📊 Technical Indicators

📈 Hourly MACD: The MACD for ETH/USD is gaining momentum in the bearish zone, signaling potential downward movement.

📉 Hourly RSI: The RSI for ETH/USD is currently below the 50 level, further indicating bearish pressure.

Major Support Level: $2,080

Major Resistance Level: $2,280

🔗 Reference Links: 1. Marathon Digital Becomes Traded Stock of the Day with $327M Volume 2. Bullish or Bearish? Bitcoin Plunges 6% Amid Matrixport’s Contradictory Reports 3. /s=ETHUSD+on+TradingView.com 4. /s=ethbtc 5. /s=ethusd 6. /s=ETHUSDT

📣 Let’s Engage!

What are your thoughts on Ethereum’s struggle to break resistance? Do you think it will eventually overcome the obstacles and surge? Share your opinions in the comments below! And don’t forget to share this article on your favorite social media platforms! 🚀

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

News

Ethereum (ETH) Nears $4,000: Whale Activity, Profitability, and Upgrades Fuel Optimism 🚀

Cryptocurrency enthusiasts are rejoicing over a promising weekend for Ethereum (ETH), the second most valuable crypto...

Bitcoin

Issuing Assets using Taproot Assets

Author Huang Shiliang urges us to think about something more advanced, how to use Taproot for issuing assets? This is...

DeFi

Circle launches MPC wallet beta for Ethereum, Polygon, Avalanche.

The innovative service enables developers to effortlessly host their nodes or benefit from Circle's reliable infrastr...

Opinion

Crypto's Macro State - Past and Future

Analytics provide valuable insights into the impact of recent and historical crypto and regulatory events on prices a...

DeFi

Crypto hacks in 2023 have caused losses of more than $1.8 billion, but the ENS token is experiencing a surge.

The majority of the leading 100 DeFi tokens experienced a bullish week thanks to the generally optimistic trend in th...