Ethereum Price Key Indicators Suggest Strong Case For Correction Below $2K

2023-12-18 05:28:47

Ethereum price is again moving lower below the $2,200 support. ETH is showing a few bearish signs and might decline further below $2,000.

Ethereum started a fresh decline from the $2,330 resistance zone.
The price is trading below $2,220 and the 100-hourly Simple Moving Average.
There is a connecting bearish trend line forming with resistance near $2,210 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could accelerate lower if there is a break below the $2,135 support.

Ethereum Price Dips Again

Ethereum price failed to gain strength for more gains above the $2,300 resistance. ETH peaked near the $2,330 zone and started a fresh decline, like Bitcoin.

There was a move below the $2,250 and $2,220 levels. The price even dropped below the 50% Fib retracement level of the key increase from the $1,980 swing low to the $2,330 high. The bears are now in control below the $2,180 support zone.

Ethereum is trading below $2,220 and the 100-hourly Simple Moving Average. There is also a connecting bearish trend line forming with resistance near $2,210 on the hourly chart of ETH/USD.

If there is a fresh increase, the price could face resistance near the $2,200 zone. The next key resistance is near the $2,210 level and the trend line. The main resistance is now at $2,250. A clear move above the $2,250 zone could send the price toward the $2,330 level.

Source: ETHUSD on TradingView.com

The next resistance sits at $2,400. Any more gains could start a wave toward the $2,550 level, above which Ethereum might rally and test the $2,750 zone.

More Losses in ETH?

If Ethereum fails to clear the $2,210 resistance, it could continue to move down. Initial support on the downside is near the $2,135 level or the last swing low.

The first key support could be the $2,080 zone. It is close to the 1.236 Fib extension level of the key increase from the $1,980 swing low to the $2,330 high. A downside break below $2,080 might start another major decline. In the stated case, Ether could even decline below the $2,000 support.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $2,135

Major Resistance Level – $2,210

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