Ethereum price plunges to $2,000, why decline is still attractive

The price of Ethereum took a huge hit like Bitcoin and fell by more than $350. ETH has tested the $2,000 support and is currently attempting a fresh hike.

• Ethereum fell more than 8%, breaking the $2,200 support zone.
• The price is trading below $2,300 and the 100-hour simple moving average.
• On the hourly chart of ETH/USD (data feed via Kraken), a break has occurred below a key bullish trendline with support around $2,340.
• Unless the price closes below the $2,100 support, the pair could rise again.

Ethereum price took a huge hit.

Ethereum price rose further beyond the $2,300 level. ETH rose to the $2,350 level, but bears remained active near $2,400. It peaked near $2,401 and, like Bitcoin, fell sharply.

The price fell more than 8% and fell below the $2,200 level. Additionally, a break occurred below the main bullish trendline supporting around $2,340 on the ETH/USD hourly chart. The pair also surged below the $2,000 support level before the uptrend took hold.

A low was made around $1,980 and the price is currently recovering. There was a move above the $2,150 and $2,180 levels. The price broke above the 50% Fib retracement level moving down from the $2,401 swing high to the $1,980 low.

Source: ETHUSD on TradingView.com

Meanwhile, the price is finding resistance near $2,275. The next major resistance is near the $2,300 level or the 76.4% Fib retracement level for a downside move from the $2,401 swing high to the $1,980 low. A clear break above the $2,300 area could push the price towards the $2,400 level. The next resistance level is $2,450. Any more profits could start a wave towards the $2,500 level.

Another decline in ETH?

If Ethereum fails to clear the $2,300 resistance, it could begin another downtrend. Initial support for the downside is near the $2,180 level.

The next major support is at $2,120. The current main support amount is close to $2,100. A sustained decline below $2,200 could lead to a prolonged decline. Key support is currently at $2,000, and a break below this level risks a near-term decline towards the $1,880 level.

technical indicators

Hourly MACD – ETH/USD MACD is gaining momentum in bearish territory.

RSI per hour – The RSI for ETH/USD is now below the 30 level.

Key Support Level – $2,100

Key Resistance Level – $2,300