Ethereum (ETH) started a major bearish reaction from the $2,880 resistance. The price dived below $2,400 and now at risk of more losses.
Ethereum Price Turns Red
In the previous technical analysis, we saw a decent increase in Ethereum above the $2,650 resistance zone. The price extended gains and traded above the $2,800 level. However, the bears were active near the $2,880 resistance.
A high was formed at $2,875 and the price started a downside correction, like Bitcoin. There was a move below the $2,740 and $2,660 levels. The price dipped below the 23.6% Fib retracement level of the upward move from the $1,385 swing low to the $2,875 high.
Ethereum dipped below the $2,550 pivot level, opening the doors to more losses. More importantly, the recent strikes on Iran by the USA triggered a sharp decline in BTC, ETH, XRP, and other cryptocurrencies.
The price traded below a key bullish trend line with support at $2,420 on the daily chart. There was a close below the 50-day simple moving average (blue), signaling a short-term trend change and an increase in selling pressure.
Finally, Ethereum tested the 50% Fib retracement level of the upward move from the $1,385 swing low to the $2,875 high at $2,130. It is now consolidating losses near the $2,220 level.
Immediate resistance is near the $2,320 level. The first major resistance sits near the $2,400 zone. If there is a clear move above the $2,420 resistance, the price could drift toward the next major resistance at $2,500 and the 50-day simple moving average (blue).
A close above the $2,500 level could set the pace for a move toward the $2,650 level. The next key resistance could be near the $2,720 level. Any more losses could send Ether price toward the $2,880 level in the coming days.
More Losses In ETH?
If Ethereum fails to clear the $2,500 resistance, it could continue to move down. Immediate support on the downside is near the $2,150 level. The first major support sits near the $2,120 level.
A daily close below the $2,120 level might spark a larger decline in Ethereum. In the stated case, the price could drop and test the $2,000 support. If there is a clear move below the $2,000 support, ETH price might even decline and retest the $1,740 pivot level.
Overall, Ethereum price is showing bearish signs below the $2,500 and $2,420 levels. If the bears remain in action below $2,500, the price could drift lower below the $2,000 handle. Only a close above the $2,500 level could encourage a fresh increase.
