Key Takeaways:
Ethereum is consolidating losses below the 50-week simple moving average (blue).
ETH/USD is still above a crucial bullish trend line with support at $2,120 on the weekly chart.
The price must stay above the $2,120 support to avoid a major drop.
Ethereum (ETH) Price is struggling to start a fresh increase. It must stay above the $2,120 and $2,000 levels to attempt a decent upward move.
Ethereum Price Faces Uphill Task
Since May 2024, Ethereum has experienced a steady decline from the $4,000 resistance zone. The bears were able to push the price below the $3,000 support level. There was also a close below $2,800 and the 50-week simple moving average (blue).
ETH declined below the 50% Fib retracement level of the main increase from the $1,517 swing low to the $4,084 high. It even underperformed compared to Bitcoin and Solana.
Ethereum price weekly chart | Source: ETHUSD on TradingView.com
Ethereum is now consolidating above a couple of important support levels. Immediate support is near the $2,200 level. The first major support is near the $2,120 level. It is a multi-touch zone and now coincides with the 76.4% Fib retracement level of the main increase from the $1,517 swing low to the $4,084 high.
There is also a crucial bullish trend line forming with support at $2,120 on the weekly chart. A weekly close below the trend line support and a follow-up move below $2,000 could trigger a nasty drop.
In the stated case, the price might decline toward the $1,650 region. Any more losses might send ETH toward the $1,520 level in the medium term.
Recovery Wave In ETH?
Conversely, Ethereum might form a support base above the trend line and start a decent increase. Immediate resistance is near the $2,500 level. The first major resistance is $2,800 and the 50-week simple moving average (blue).
A clear move above the $2,800 resistance might send the price toward the $3,000 resistance. The next resistance is now forming near the $3,220 zone. If the price clears the $3,220 resistance, it could gain bullish momentum and rise toward the $3,480 resistance. A close above the $3,480 level could open the doors for a fresh test of the $4,000 barrier.
Overall, Ethereum price is consolidating losses above major support at $2,120. ETH could start a decent increase if it stays above $2,120. If not, it might dive to $1,520.
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