The bulls must protect $2,300 to avoid a major decline in the near term.
Ethereum (ETH) price failed to surpass the $2,750 and $2,800 resistance levels after which it faced a bearish reaction. Initially, it looked like a downside correction below the $2,650 and $2,620 support levels. However, the bears now seem to have the upper hand below $2,500.
After failing to clear a crucial resistance zone near $2,800 the last week, ETH price began a fresh decline. It quickly slipped below the $2,650 and $2,620 support levels. The price even traded below a connecting bullish trend line with support at $2,420 on the daily chart. It traded close to the key support at $2,300 and settled below the 50-day simple moving average (blue).
ETH is now showing a few bearish signs below $2,400 and the 50-day simple moving average (blue). A low was formed at $2,315 and the price is now consolidating losses. There was a minor recovery wave above the $2,400 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,732 swing high to the $2,315 low.
However, the bears now seem to be active near the $2,500 resistance and the 50-day simple moving average (blue). On the upside, the price could face resistance near the $2,400 level. The first major resistance sits near the $2,500 pivot level. The next resistance is near the $2,520 level and the 50% Fib retracement level of the downward move from the $2,732 swing high to the $2,315 low.
A clear move above the $2,520 level could open the doors for a move toward the $2,620 level or even $2,650. The main hurdle is still near the $2,750 and $2,800 levels. On the daily chart, a key bearish trend line is forming, with resistance at $2,850.
If ETH bulls push the price above the $2,850 resistance, there could be a strong increase. The price could rise toward the $3,250 level in the stated case.
Conversely, Ethereum might struggle to recover further above the $2,420 resistance or $2,500. Immediate support is near the $2,340 level, and the first major support sits near the $2,300 level. A daily close below the $2,300 level might send ETH toward the $2,150 support.
If the bulls fail to defend the $2,150 support, ETH might decline below the $2,000 handle. The next major support is near the $1,880 level. Overall, Ethereum price is struggling to settle above $2,500. If ETH dives below $2,300, there could be a larger decline toward $2,150 or even $1,880 in the coming weeks.
