Ethereum dipped below the $2,500 support zone with the start of the Ukraine invasion. ETH price is falling and it risks further declines if it breaks $2,200 as well, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Continues to Fall
Ethereum is facing strong selling interest which resulted in a sharp decline below the $2,650 level. More importantly, Russia’s military operation increased the selling pressure and ETH broke the $2,500 support level. There was a clear move below the $2,420 support and the price settled below the 100 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near $2,680 on the hourly chart of ETH/USD. ETH even tested the $2,300 level.
An immediate resistance is near the $2,400 level. This is close to the 23.6% Fib retracement level of the drop from the $2,752 low to $2,302 low. The first major resistance is seen near the $2,500 and $2,520 levels.
The 50% Fib retracement level of the drop from the $2,752 high to $2,302 low is also near the $2,520 level. The main resistance is now forming near the $2,650 level and the 100 hourly simple moving average. A clear move above $2,650 could result in a decent recovery.
Will Ethereum Drop More?
Jindal says that if Ethereum fails to start a recovery wave above the $2,400 level, it may continue to move lower. An initial support on the downside is near the $2,300 level. The next major support is near the $2,250 level. A downside break below the $2,250 support could push the price towards the $2,200 support level. If the decline deepens, the bears may target a move towards the $2,050 level in the short term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is currently well below the 50 level.
- Major Support Level – $2,300
- Major Resistance Level – $2,500
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