Ethereum Price Drops Toward $2,000, Pressure Mounts on Key Support

Ethereum price started a sharp decline below the $2,220 zone. ETH is now consolidating above $2,020 and might aim for a recovery wave if it climbs above $2,110.

• Ethereum started a sharp decline below the $2,200 zone.
• The price is trading below $2,120 and the 100-hourly Simple Moving Average.
• There are two bearish trend lines forming with resistance at $2,120 and $2,165 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move down if it stays below the $2,165 resistance.

Ethereum price failed to stay above $2,220 and started a fresh decline, like Bitcoin. ETH price declined below $2,150 and $2,120 to enter a short-term bearish zone.

The price even spiked below $2,050. A low was formed at $2,025, and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $2,385 swing high to the $2,025 low. There are also two bearish trend lines forming with resistance at $2,120 and $2,165 on the hourly chart of ETH/USD.

Ethereum price is now trading below $2,100 and the 100-hourly Simple Moving Average. If the bulls remain in action above $2,025, the price could attempt another increase. Immediate resistance is seen near the $2,080 level.

The first key resistance is near the $2,120 level or the 100-hourly Simple Moving Average. The next major resistance is near the $2,165 level and the second trend line. A clear move above the $2,165 resistance might send the price toward the $2,200 resistance or the 50% Fib retracement level of the downward move from the $2,385 swing high to the $2,025 low.

An upside break above the $2,200 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,250 resistance zone or even $2,300 in the near term.

If Ethereum fails to clear the $2,120 resistance, it could start a fresh decline. Initial support on the downside is near the $2,040 level. The first major support sits near the $2,025 zone.

A clear move below the $2,025 support might push the price toward the $2,000 support. Any more losses might send the price toward the $1,965 region. The main support could be $1,880.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,025

Major Resistance Level – $2,120