Key Takeaways:
Ethereum declined over 20% and traded below the $2,480 support.
ETH/USD is still above a key bullish trend line, with support at $2,000 on the weekly chart.
The price could consolidate near $2,000 for some time before a fresh increase.
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NEW DELHI (CoinChapter.com) â Ethereum (ETH) is struggling to start a strong uptrend. It declined over 20% and is now consolidating losses above the $2,000 support.
Ethereum Price Dives To $2,000
In the past few sessions, Ethereum saw a massive sell-off. It declined below the $2,800 and $2,480 support levels to enter a medium-term bearish zone. ETH even dragged Bitcoin, XRP, and many other cryptocurrencies lower.
There was a decline below the 50% Fib retracement level of the main move from the $881 swing low to the $4,084 high. The bears even managed to push the price below the $2,250 support zone and the 50-week simple moving average (blue).
Ethereum price weekly chart | Source: ETHUSD on TradingView.com
Ethereum tested the $2,000 support zone and the last three weekly candles suggest a major setback for the bulls. Moreover, this weekâs close could play an important role, and if the price settles below the 50-week simple moving average (blue), it might increase selling pressure.
Immediate support sits near the $2,100 level. The first major support is visible near the $2,000 level. There is also a key bullish trend line forming with support at $2,000 on the weekly chart. It is close to the 61.8% Fib retracement level of the main move from the $881 swing low to the $4,084 high.
A downside break and a weekly close below the $2,000 support might spark strong bearish moves. In the stated case, the price might decline toward the $1,650 region.
Recovery Wave In ETH?
Conversely, Ethereum might start a consolidation phase above the $2,000 support and later start a recovery wave. Immediate resistance is near the $2,450 level. The first major resistance is $2,600 and the 50-week simple moving average (blue).
The main resistance is now forming near the $2,800 zone. If the price clears the $2,800 resistance, it could gain pace and rise toward the $3,000 resistance. The next key resistance might be $3,150. A close above the $3,150 level could open the doors for a fresh test of the $3,550 hurdle.
Overall, Ethereum price is gaining bearish momentum below $2,450. If the bulls fail to protect a weekly close below the $2,000 support zone, ETH could decline further toward $1,650 in the coming days.
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