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05/08/24
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Ethereum Faces Major Setback Below $3,000: Key Resistance and Support Levels to Consider
Ethereum has experienced a significant downturn as it slipped below the critical $3,000 threshold, leading to a decline of more than 20%. Currently, ETH is attempting to stabilize after trading near the $2,000 mark.
The decline began when Ethereum dropped below vital support levels at $2,800 and $2,650. Presently, the cryptocurrency is trading below $2,500, further compounded by the pressure of the 100-hourly Simple Moving Average, indicating a bearish trend. A notable resistance level has formed at around $2,500, coinciding with a bearish trend line observed on the ETH/USD hourly chart.
Following the breach of the $3,000 support, Ethereum also exerted downward pressure on Bitcoin, pushing the price below $2,500. The digital asset experienced a sharp sell-off, with prices plunging to $1,911 before consolidating. Although there was a minor recovery above the $2,200 level, Ethereum remains below the significant 23.6% Fibonacci retracement level of the recent downward trend from the swing high of $2,922 to the low of $1,911.
At present, the cryptocurrency is trading under the $2,500 mark, with resistance anticipated at approximately $2,420, which aligns with the 50% Fibonacci retracement level from the same decline. The immediate challenge lies in surpassing the $2,500 resistance, with further obstacles positioned at $2,540 and $2,800. A successful breakout above these levels could potentially propel Ethereum towards the $3,000 resistance area.
Conversely, should Ethereum struggle to break through the $2,500 resistance, it may be poised for another downturn. The initial support is located around $2,200, with critical levels of support at $2,120 and $1,920. A drop below these thresholds could catalyze further losses and signal deeper market challenges for Ethereum.
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