Why Ethereum (ETH) Key Indicators Suggest Fresh Drop Below $2K

Ethereum failed to stay above $2,100 and it is now moving lower against the US Dollar. ETH price is likely to continue lower and it could even break $2,000.

Ethereum started a fresh decline from well above the $2,200 support zone.
The price is now trading below $2,100 and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $2,100 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could decline heavily if there is a break below the $2,000 support zone in the near term.

Ethereum Price Is Gaining Bearish Pace
After struggling to stay above $2,250, ethereum started a fresh decline. ETH broke the $2,200 and $2,150 support levels to move into a short-term bearish zone.
The price gained pace below the $2,150 level and it even broke $2,120. There was a break below the 23.6% Fib retracement level of the upward move from the $1,718 swing low to $2,289 high. There was also a break below a major bullish trend line with support near $2,100 on the hourly chart of ETH/USD.
The pair is now trading below $2,100 and the 100 hourly simple moving average. An immediate support on the downside is near the $2,050 level. The first major support is near the $2,000 level.

Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the upward move from the $1,718 swing low to $2,289 high is near the $2,000 level. If there is a clear break below $2,000, the price could decline heavily. In the stated case, the price could dive towards the $1,850 level. The next major support on the downside is near the $1,700 level.
Fresh Increase in ETH?
If Ethereum stays above the $2,050 support zone or $2,000, it could start a fresh increase. An immediate resistance on the upside is near the $2,120 level and the 100 hourly SMA.
The main breakout resistance is now forming near the $2,150 and $2,160 levels. A close above the $2,160 level could start a major increase towards the $2,250 level or even $2,320 in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Major Support Level – $2,000
Major Resistance Level – $2,150

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.