How Ethereum Close Below $2.3K Could Spark Larger Degree Decline

Ethereum remains in a bearish zone and it traded below $2,350 against the US Dollar. ETH price could accelerate lower if there is a close below $2,300.

Ethereum extended its decline below the $2,400 and $2,350 levels.
The price is now trading well below $2,400 and the 100 hourly simple moving average.
There is a crucial bearish trend line forming with resistance near $2,380 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend its decline if the bulls fail to protect the key $2,300 support zone.

Ethereum Price Remains At Risk
Ethereum started a steady decline from well above $2,500, similar to bitcoin. ETH traded below the $2,450 and $2,400 support levels to move into a bearish zone.
There was also a break below the $2,350 support zone and yesterday’s low. The price is now trading well below $2,400 and the 100 hourly simple moving average. Ether is managing to stay above the key $2,300 support zone. A low is formed near $2,304 and the price is consolidating losses.
An initial resistance is near the $2,350 level. The first key resistance is near the $2,380 level. There is also a crucial bearish trend line forming with resistance near $2,380 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com
The trend line is near the 23.6% Fib retracement level of the of the recent drop from the $2,640 swing high to $2,304 low. The first major resistance is near the $2,400 level. The main resistance is now forming near the $2,450 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the of the recent drop from the $2,640 swing high to $2,304 low.
More Losses in ETH?
If Ethereum fails to clear the $2,380 and $2,400 resistance levels, it could continue to move down. An initial support on the downside is near the $2,320 level.
The main breakdown support is now forming near the $2,300 level. A downside break below the recent low and the $2,300 support level may possibly spark a major decline. In the stated case, ether price is likely to decline towards $2,150 in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is struggling to gain pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently near the 40 level.
Major Support Level – $2,300
Major Resistance Level – $2,400

Jimmy Steele

I’m known as one of the best Crypto Authors in the market. My work has been featured in numerous publications, including The Wall Street Journal, Forbes, and Barron’s. I’m a regular contributor to CoinDesk and have been a guest on CNBC, Fox Business, and Bloomberg TV.