Ethereum Dives 15%, Why Close Below $2K Is The Key


Ethereum gained bearish momentum below $2000 against the US Dollar. ETH is trading even below $2000 and still at risk of further losses.

  • Ethereum started a new low below $2100 and $2000.
  • The price is now trading below $2100 and the 100 hourly simple moving average.
  • There was a break below the major uptrend line with support near $2,250 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move lower if there is a close below the $2000 support.

Ethereum price breaks 2 thousand dollars

Ethereum failed to extend recovery wave above the $2400 level. ETH started another decline and traded below the $2,320 support area.

There was a break below the major uptrend line with support near $2,250 on the hourly chart of ETH/USD. The pair fell below the $2,200 and $2,100 levels. Even the price of the ether broke the $2000 support area and settled below 100-hour simple moving average.

It was trading around $1,950 and is currently showing signs of further losses. If there is a recovery wave, the price may face resistance near the $2,050 level.

The 23.6% Fib retracement level of the recent decline from $2,451 to the $1,939 low is also near $2,060. The first major resistance is near the $2,150 level. The main resistance is now forming near the $2,220 level.

Ethereum price

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the recent decline from the $2,451 high to the $1,939 low is also nearing $2,200. A close above the $2200 level may open the door for a decent increase. In the mentioned case, the price of Ether may rise towards the $2350 resistance.

More losses in ETH?

If Ethereum fails to recover above the $2,200 resistance, it may continue to decline. There is initial support on the downside near the $1,940 region.

The next major support is near the $1,880 level. A daily close below the $2,000 level could lead to further losses below $1,880. In the mentioned case, the price could regress towards the $1700 level. The next major support might be near the $1550 and $1500 levels in the near term.

Technical Indicators

MACD per hourETH/USD’s MACD is gaining momentum in bearish territory.

Hourly RSIThe RSI for ETH/USD is well below the 40 level.

Key Support Level – $1,880

Key Resistance Level – $2200



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