Ethereum drops 15%, why a close below $2,000 is key

Ethereum fell below $2,000 against the US dollar. ETH is even trading below $2,000 and there is still a risk of more losses.

  • Ethereum started a fresh dip below $2,100 and $2,000.
  • The price is now trading below $2,100 and the 100 hourly simple moving average.
  • There was a break above a key bullish trend line with support near $2,250 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to continue falling if it closes below the $2,000 support.

Ethereum price crosses $2,000

Ethereum failed to scale recovery wave Above the $2,400 level. ETH started to decline again and fell below the $2,320 support area.

There was a break below a key bullish trend line with support near $2,250 on the hourly chart of ETH/USD. The pair fell below the $2,200 and $2,100 levels.Ether price even broke the $2,000 support area and closed at 100 hourly simple moving average.

It is trading near $1,950 and is currently showing signs of more losses. In the event of a recovery wave, the price could face resistance near $2,050.

The 23.6% Fib retracement level of the recent move from the $2,451 swing high to $1,939 low is also near $2,060. The first major resistance is near $2,150. The main resistance is now near $2,220.

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the recent swing high from $2,451 to $1,939 low is also near $2,200. A close above $2,200 could open the door for a sharp rise. In the aforementioned scenario, ether price could rise towards the $2,350 resistance.

ETH to lose more?

If Ethereum fails to recover above the $2,200 resistance, it could continue to decline. Initial support on the downside is near $1,940.

The next major support is near $1,880. A daily close below $2,000 could spark more losses below $1,880. In the aforementioned scenario, the price could drop towards the $1,700 level. The next major support levels in the near term could be around $1,550 and $1,500.

Technical indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is well below the 40 level.

Major Support – $1,880

Major Resistance – $2,200

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