11 December 2023
Ethereum price took a major hit like Bitcoin and dropped over $350. ETH tested the $2,000 support and is currently attempting a fresh increase.
Ethereum declined over 8% and broke the $2,200 support zone.
The price is trading below $2,300 and the 100-hourly Simple Moving Average.
There was a break below a key bullish trend line with support near $2,340 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could rise again unless there is a close below the $2,100 support zone.
Ethereum Price Took A Major Hit
Ethereum price climbed further higher above the $2,300 level. ETH even cleared the $2,350 level but the bears remained active near the $2,400 zone. A high was formed near $2,401 and there was a sharp decline like Bitcoin.
The price declined over 8% and there was a move below the $2,200 level. Besides, there was a break below a key bullish trend line with support near $2,340 on the hourly chart of ETH/USD. The pair even spiked below the $2,000 support before the bulls appeared.
A low was formed near $1,980 and the price is now attempting a recovery wave. There was a move above the $2,150 and $2,180 levels. The price climbed above the 50% Fib retracement level of the downward move from the $2,401 swing high to the $1,980 low.
Source: ETHUSD on TradingView.com
On the upside, the price is facing resistance near the $2,275 zone. The next key resistance is near the $2,300 level or the 76.4% Fib retracement level of the downward move from the $2,401 swing high to the $1,980 low. A clear move above the $2,300 zone could send the price toward the $2,400 level. The next resistance sits at $2,450. Any more gains could start a wave toward the $2,500 level.
Another Decline in ETH?
If Ethereum fails to clear the $2,300 resistance, it could start another decline. Initial support on the downside is near the $2,180 level.
The next key support is $2,120. The main support is now near $2,100. A downside break below $2,200 might start an extended decline. The key support is now at $2,000, below which there is a risk of a move toward the $1,880 level in the near term.
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 30 level.
Major Support Level – $2,100
Major Resistance Level – $2,300