Ethereum Down 40% In A Week, Here’s Why ETH Could Recover

Ethereum declined heavily and it even tested the $2,000 support zone against the US Dollar. ETH price is attempting a recovery and it must clear $2,800 for a steady rise.

Ethereum is down over 40% in a week and it even tested the $2,000 support zone.
The price is now well below the $3,000 level and the 100 hourly simple moving average.
There is a major contracting triangle forming with resistance near $2,650 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must clear $2,650 and $2,800 to move back into a positive zone in the near term.

Ethereum Price Shows Recovery Signs
Ethereum remained in a major downtrend from well above the $3,000 pivot level. ETH declined over 40% in a few days and it even broke the $2,500 support zone, similar to bitcoin.
The bears were able to clear the $2,200 support zone. There was also a spike below $2,000 and the price formed a swing low near $1,850. Ether is now recovering and it is trading above the $2,200 level. However, it is well below the $3,000 level and the 100 hourly simple moving average.
The recent swing low was formed near $2,149. An immediate resistance is near the $2,500 level. It is near the 50% Fib retracement level of the recent drop from the $2,847 swing high to $2,149 low.

Source: ETHUSD on TradingView.com
There is also a major contracting triangle forming with resistance near $2,650 on the hourly chart of ETH/USD. The triangle resistance is close to the 61.8% Fib retracement level of the recent drop from the $2,847 swing high to $2,149 low. A successful break above the $2,650 and $2,800 levels could open the doors for a steady recovery in the coming sessions. The next major resistance is near the $3,125 level.
Fresh Decline in ETH?
If Ethereum fails to continue higher above the $2,650 and $2,800 resistance levels, it could start another decline. An initial support on the downside is near the $2,300 level and the triangle trend line.
The first key support is near the $2,200 level. The main support is now forming near the $2,000 level. If there is a downside break below the $2,000 zone, the price could decline towards the $1,600 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.
Hourly RSI – The RSI for ETH/USD is now close to the 40 level.
Major Support Level – $2,000
Major Resistance Level – $2,800

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 26,942.22
ethereum
Ethereum (ETH) $ 1,880.48
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 279.05
usd-coin
USD Coin (USDC) $ 0.999799
xrp
XRP (XRP) $ 0.531128
staked-ether
Lido Staked Ether (STETH) $ 1,878.36
cardano
Cardano (ADA) $ 0.346602
dogecoin
Dogecoin (DOGE) $ 0.069795
solana
Solana (SOL) $ 20.20
matic-network
Polygon (MATIC) $ 0.810138
tron
TRON (TRX) $ 0.078374
litecoin
Litecoin (LTC) $ 90.64
polkadot
Polkadot (DOT) $ 5.20
avalanche-2
Avalanche (AVAX) $ 14.63
binance-usd
Binance USD (BUSD) $ 0.999216
shiba-inu
Shiba Inu (SHIB) $ 0.000008
dai
Dai (DAI) $ 1.00
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 26,953.22
uniswap
Uniswap (UNI) $ 4.76
leo-token
LEO Token (LEO) $ 3.52
chainlink
Chainlink (LINK) $ 6.20
cosmos
Cosmos Hub (ATOM) $ 10.07
okb
OKB (OKB) $ 45.18
monero
Monero (XMR) $ 146.99
ethereum-classic
Ethereum Classic (ETC) $ 17.38
the-open-network
Toncoin (TON) $ 1.66
stellar
Stellar (XLM) $ 0.089177
bitcoin-cash
Bitcoin Cash (BCH) $ 113.74
lido-dao
Lido DAO (LDO) $ 2.37
true-usd
TrueUSD (TUSD) $ 1.00
internet-computer
Internet Computer (ICP) $ 4.38
filecoin
Filecoin (FIL) $ 4.34
quant-network
Quant (QNT) $ 116.56
aptos
Aptos (APT) $ 8.13
hedera-hashgraph
Hedera (HBAR) $ 0.049719
crypto-com-chain
Cronos (CRO) $ 0.059785
arbitrum
Arbitrum (ARB) $ 1.18
near
NEAR Protocol (NEAR) $ 1.51
vechain
VeChain (VET) $ 0.018595
apecoin
ApeCoin (APE) $ 3.00
the-graph
The Graph (GRT) $ 0.117456
paxos-standard
Pax Dollar (USDP) $ 0.999632
frax
Frax (FRAX) $ 1.00
algorand
Algorand (ALGO) $ 0.135272
eos
EOS (EOS) $ 0.888008
the-sandbox
The Sandbox (SAND) $ 0.519472
rocket-pool
Rocket Pool (RPL) $ 48.95
optimism
Optimism (OP) $ 1.46
elrond-erd-2
MultiversX (EGLD) $ 36.34