Ethereum (ETH) is gaining bearish momentum below the $2,250 support. The price is at risk of selloff below the $2,000 support.
Ethereum Price Reaches Key Support
In the past few days, we saw a steady decline in Ethereum after it failed to clear the $2,850 resistance zone. A high was formed at $2,860 and the price started a fresh decline. There was a move below the $2,650 and $2,550 support levels to enter a bearish zone, like Bitcoin below $100,000.
There was a break below a short-term rising channel with support at $2,680 on the daily chart to spark a bearish wave. The bears pushed ETH price below the 76.4% Fib retracement level of the upward move from the $2,100 swing low to the $2,860 high.
Ethereum is now well below the $2,250 support and the 50-day simple moving average (blue). It seems to be reaching the key support at $2,100. The current price action is very bearish and if the bulls fail to protect the $2,100 support, there could be heavy losses.
Immediate support on the downside is near the $2,100 level. The first major support sits near the $2,000 level. A daily close below the $2,000 level might spark heavy bearish moves in Ethereum.
In the stated case, the price could drop and test the $1,920 support. If there is a clear move below the $1,920 support, ETH price might even decline and test the $1,630 support zone in the coming days. It represents the 1.618 Fib extension level of the upward move from the $2,100 swing low to the $2,860 high.
Another Recovery Wave In ETH?
If Ethereum stays above $2,100, there could be a recovery wave. On the upside, the price could face resistance near the $2,320 level. The first major resistance sits near the $2,500 level.
The next resistance is near the $2,650 zone. There is also a key bearish trend line in place with resistance near $2,700 on the same chart. A clear move above the $2,700 level could open the doors for a strong increase toward the $3,000 level or the 50-day simple moving average (blue).
If ETH clears the $3,000 resistance, the bulls could aim for a move toward the $3,080 resistance. Any more gains might call for a test of the $3,500 resistance zone in the coming days.
Overall, Ethereum price shows many bearish signs below $2,350 and $2,500. A convincing move below $2,100 and $2,000 could increase selling pressure in the coming sessions.
