The price of Ethereum has once again gone down and crossed the major support level of $2,550, below which the asset is seriously considered oversold. The market gurus are now pondering whether ETH can go even lower and test the $2,250 low before buyers come in and lift the token.
Current Market Overview
The Ethereum unpin from a recent high has ensued further, going south of $2,550 and deep beneath $2,500. This latest decline has also made ETH drop below the 100-hour Simple Moving Average, meaning the market is bearish. A bearish trend line is also present while resistance has been detected at the $2,500 mark on the ETH/USD hourly Chart.
Ethereum needs to hold above $2,400 for the next week or so to prevent further losses. Failing that, bears were likely to extend their downward move to the $2,250 support level.
Current Market Overview
Ethereum has begun a new downturn, the $2,550 level has been breached and ETH is now trading below $2,500. This last decline has been detrimental to ETH which is now trading beneath the 100-hour Simple Moving Average, a clear sign that the market is bearish. A bearish trend line has also currently been drawn on the same ETH/USD hourly chart with real resistance at the $2,500 level.
However, for further downside elimination, Ethereum has to prevent the $2,400 support level from being breached in the short term. To begin with, a deeper dive can be observed with the price sinking to the $2,250 support zone.
Ethereum Price Extends Losses
The price of Ethereum started to fall when it could not sustain at $2,620. This made ETH trade below $2,550 and $2,500 as it followed the same pattern as Bitcoin. The cryptocurrency even breached the $2,400 support level before it made a feeble attempt at a rebound.
Today, Ethereum is under $2,500 and the 100-hour Simple Moving Average and has a level of resistance at $2,500. The price is also for a very long time close to the 23-ether. From the $2,596 high to the $2,401 low, the BTC price has now bounced back to the 6% Fibonacci retracement level.
On the flip side, bulls will find the area of $2,500 and the 100-hour Simple Moving Average as the first level of resistance. Additional opposition might be expected in the area of the 50% Fibo retracement level with strong barriers seen at $2,550. If Ethereum will be able to remain above $2,550 it might make its next stop at $2,620 with further upward movement possibly towards $2,660. As such, ETH may test the $2,800 resistance in the near term in case of a breakout above $2,660.
Possible Further Decline?
However, if the Ethereum price does not go past the $2,500 mark, a bearish trend will most likely occur soon. Some of the key resistances are placed around $2,470 with initial support estimated to be around $2,420 and the first strong support zone at $2,400.
In case the Ethereum price retests the $2,400 support level, the price may decline toward $2,320 as some of the buyers flood the market to prevent additional declines. In the end, if this support fails to hold the next pattern of support lies at $2,250. If the market is worse, Ethereum easily could fall to $2,110.
Technical Indicators
– Hourly MACD: Looking at the MACD histogram for ETH/USD, it is clear that the asset’s bearish momentum is increasing steadily.
– Hourly RSI: The RSI for ETH/USD is at a level below 50 which conveys to us that the market is bearish.
– Major Support Level: $ 2400
– Major Resistance Level: Up to twenty-five hundred dollars ( $2,500).
That is why investors are looking at Ethereum to answer the question of whether it will be able to reverse the situation in the crypto market or drop lower. It is recommended that investors should be informed and put more think when selling and buying their stock in this volatile market environment.
ETH Takes A Hit: What’s Next For Ethereum? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.