Ethereum Price Plummets by Over 20% as Market Responds to Significant Sell-Off

Ethereum has experienced a significant price drop of over 20% as the market reacts to a major sell-off, with the price plummeting below $3,000 and currently striving to recover from the $2,000 range.

The decline began with Ethereum breaking crucial support levels at $2,800 and $2,650, leading to the price trading below $2,500 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD provided via Kraken, a bearish trend line has emerged with resistance at $2,500. To initiate a recovery wave, the pair must surpass the $2,500 resistance zone.

Following the breach of the $3,000 support, Ethereum dragged Bitcoin down, causing it to dip below $2,500 and experience a sharp decline below $2,200. The price even fell below $2,000, touching $1,920 before finding support. Currently, the price is consolidating losses after a minor recovery above $2,200, breaking the 23.6% Fib retracement level from the recent swing high to the low.

Ethereum is currently trading below $2,500 and the 100-hourly Simple Moving Average, with potential resistance near $2,420 and the 50% Fib retracement level. The primary resistance lies at $2,500, followed by a bearish trend line at the same level, with another hurdle at $2,540. A close above $2,540 could propel Ether towards the $2,680 resistance.

Looking ahead, Ethereum faces a critical resistance level at $2,800, where a breakthrough could drive the price towards the $3,000 zone in the near future. However, failure to clear the $2,500 resistance might trigger another decline, with initial support around $2,200 and major support near $2,120. Further downward movement could push the price towards $2,050 and potentially the $2,000 support level, with a key support at $1,920.

In terms of technical indicators, the MACD for ETH/USD indicates a loss of momentum in the bearish zone, while the RSI is currently below the 50 zone. The major support level remains at $2,120, with the major resistance level at $2,500.

The recent price fluctuations in Ethereum underscore the volatile nature of the cryptocurrency market, highlighting the importance of closely monitoring key support and resistance levels for potential trading opportunities. Investors are advised to conduct thorough research and exercise caution when navigating the dynamic landscape of digital assets.