Ethereum (ETH) has experienced a severe price decline, plummeting below multiple support levels as bearish pressure intensifies. The second-largest cryptocurrency by market cap is now testing critical support around $1,500, with technical indicators suggesting further downside potential.
As broader crypto markets face significant selling pressure, Ethereum’s price action has turned decisively bearish, breaking below several key technical levels.
Key Technical Levels Under Pressure
The latest price action shows:
- Sharp decline below the $1,800 psychological level
- Breach of critical support at $1,650
- Trading well below the 100-hour Simple Moving Average
- Formation of new local low at $1,537
Technical Analysis Points to Further Weakness
Multiple technical indicators suggest continued bearish momentum:
- MACD showing increasing bearish momentum
- RSI below 50, indicating bearish control
- Break below bullish trend line at $1,775
- 23.6% Fibonacci retracement rejection at $1,580
Critical Support and Resistance Levels
Traders should monitor these key price levels:
Resistance Levels:
- $1,600 – Immediate resistance
- $1,675 – 50% Fibonacci retracement
- $1,710 – Major resistance zone
- $1,820 – Previous support turned resistance
Support Levels:
- $1,550 – Current support zone
- $1,535 – Critical support level
- $1,420 – Next major support
- $1,400 – Psychological support
Market Outlook and Trading Scenarios
Two primary scenarios are emerging:
Bearish Scenario:
A break below $1,535 could trigger cascading sells toward $1,420 and potentially $1,400. The absence of strong buying pressure suggests bears remain in control of the market.
Bullish Scenario:
Recovery above $1,600 could signal a potential trend reversal, with targets at $1,675 and $1,710. However, significant buying volume would be needed to overcome current bearish momentum.
FAQ
What’s causing Ethereum’s price decline?
The current decline appears linked to broader market weakness and increased selling pressure across major cryptocurrencies.
Could ETH drop below $1,500?
Technical indicators suggest further downside is possible if the $1,535 support fails to hold.
What would signal a potential recovery?
A decisive break above $1,600 with increasing volume would be the first sign of potential trend reversal.