Ethereum tumbled as low as $2,420 after starting a massive decline from the $2,700 region. It could also decline below the $2,420 support zone, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Takes a Shot
Although Ethereum struggled to settle above the $2,700 resistance, it started a fresh decline from here and declined to around $2,422. ETH is now consolidating its losses. An initial resistance is seen near the $2,485 level. There is also a key bearish trend line forming with resistance near $2,490 on the hourly chart of ETH/USD. The trend line is near the 23.6% Fib retracement level of the low from the $2,703 low to $2,422 low.
The first major resistance is near the $2,565 level. This is close to the 50% Fib retracement level of the drop from the $2,703 low to $2,422 low. The main breakout zone is now near the $2,650 level and the 100 hourly simple moving average. A close above the $2,650 level could open the doors for a decent rise. In the stated case, ETH could rise towards the $2,700 resistance.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to gain momentum above the $2,565 resistance, it may continue to decline. According to him, an initial support is near the $2,420 region. The next major support is near the $2,400 level. If there is a downside break below $2,400, the decline could accelerate. In this case, ETH could even decline below the $2,350 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now moving in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is currently well below the 50 level.
- Major Support Level – $2,400
- Major Resistance Level – $2,565
