By Alicia Maher
The second-largest cryptocurrency by market capitalization began a major price decline from the $2,700 price level against the USD, with the price of Ethereum plunging below $2,500 and moving further down below $2,400.
Following the recent market correction that has engulfed the crypto industry with top tokens underperforming, it is not surprising to see Ethereum taking a hit in what has been a disappointing trading period for the majority of the market.
ETH Price Continues to Struggle
The value of the second-biggest cryptocurrency is currently attempting to make a statement by placing itself above the $2,700 resistance mark. However, ETH could top out close to the $2,700 zone, where it began another fresh decline.
Additionally, the previous trading session observed some sharp activity below the $2,620 and $2,550 price levels.
The bears appear to be pushing the price further below $2,500 alongside the 100-day hourly simple moving average (SMA). Meanwhile, a price low is created at close to $2,422, where the price is currently consolidating the coin’s losses.
However, a cursory observation of the price upside indicates that the initial resistance pushes toward the $2,485 price level. A key bearish trend is also formed alongside the resistance near the $2,490 price level.
The trend line is also moving near the Fib retracement at 23.6%, showing the recent decline as it hovers from the high swing of $2,703 to the low swing of $2,422.
Meanwhile, the first major resistance expected to form will be close to the $2,565 level. It is near the 50% retracement level of the previous decline. Moreover, the critical breakout zone will be $2,650 alongside the 100 hourly SMA.
A further close above the $2,650 price zone would allow another significant price spike. In this case, the price of ETH might be able to rise upward in the direction of the $2,700 resistance zone.
Is ETH Primed for More Loss?
According to the price analysis revealed by industry experts, if Ethereum fails to move above the $2,565 resistance level, it could be in a downward price trend where the value will continue to slump further below.
Although it is too early to write off Ethereum’s comeback, the current situation warrants caution before making any informed price prediction.
In this case, support for the downtrend would be needed to stay at $2,420 to reduce the impact of the downtrend on the value of Ethereum.
ETH, like BTC, is in a stormy period considering the entire market scenario, which has made the majority of tokens bleed on the trading floor. Any subsequent price rally will accelerate the market recovery rate for the affected tokens in due time.
Consequently, the next major support will be found at $2,400 should no further negative market trend occur.
Should a downtrend below the major support zone occur, the price of ether would look to accelerate further down the support level. It could further move down below the expected support level in this situation.