Ethereum (ETH) is down over 40% from the $4,000 zone. It must stay above the $2,100 and $2,000 levels to avoid a major selloff.
Ethereum Price Reaches Significant Support
After a strong rejection near $4,100, Ethereum started a major decline on the weekly chart underperforming Bitcoin. There was a move below the $3,620 and $3,100 support levels. The price even settled below $3,000 and the 50-week simple moving average (blue).
The bears were able to push ETH below the 76.4% Fib retracement level of the main increase from the $2,100 swing zone to the $4,088 high. The price declined over 40% and tested the main support at $2,000.
Ethereum is consolidating near the key support at $2,000-$2,100. There is also a crucial bullish trend line forming with support at $2,120 on the weekly chart.
If the bulls fail to keep the price above the trend line and there is a weekly close, ETH could see heavy bearish moves. Immediate support is near the $2,100 level. The first major support is near the $2,000 level.
A weekly close below the trend line support and a follow-up move below $2,000 could trigger a nasty drop. In the stated case, the price might decline toward the $1,640 region. It coincides with the 1.236 Fib extension level of the main increase from the $2,100 swing zone to the $4,088 high.
Any more losses might send ETH toward the $1,400 level in the medium term. The next stop for the bears could be the 1.618 Fib extension level of the main increase from the $2,100 swing zone to the $4,088 high at $870.
Recovery In ETH?
If Ethereum bulls remain active near the trend line or $2,000, there could be a recovery wave. Immediate resistance is near the $2,320 level. The first major resistance is $2,570. A clear move above the $2,570 resistance might send the price toward the $2,850 resistance.
The next resistance is now forming near the $3,100 zone and the 50-week simple moving average (blue). If the price clears the $3,100 resistance, it could gain bullish momentum and rise toward the $3,620 resistance. A close above the $3,620 level could open the doors for a fresh test of the $4,000 barrier.
Overall, Ethereum price is consolidating losses and struggling to stay above $2,000. If the bulls fail to protect $2,000, ETH could dive toward $1,630 or even $1,400.
