Why Ethereum (ETH) Price Could Nosedive Before A Strong Recovery Kicks In

Aayush Jindal
By Aayush Jindal 3 Min Read

Key Takeaways:

  • Ethereum struggled near $2,850 and trimmed most gains.
  • ETH/USD is still well below a major bearish trend line with resistance at $3,000 on the daily chart.
  • The price could see a downside thrust toward $2,000 before the bulls take a stand.

Ethereum (ETH) price is showing bearish signs below $2,800 and the 50-day simple moving average (blue). It might extend losses if it breaks $2,300.

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Why Ethereum (ETH) Price Could Nosedive Before A Strong Recovery Kicks In

Ethereum Price Turns Red Below $2,800

In August 2024, Ethereum price saw a recovery wave from the $2,100 level like Bitcoin. There was a move above the $2,350 and $2,450 resistance levels. The bulls even pumped the price above the $2,500 resistance.

However, the price failed to clear the $2,800-$2,850 resistance region. The bears remained active near the 50% Fib retracement level of the downward wave from the $3,566 swing high to the $2,099 low.

Ethereum price daily chart | Source: ETH/USD on TradingView.com
Ethereum price daily chart | Source: ETH/USD on TradingView.com

Ethereum failed to settle above the 50-day simple moving average (blue) and started another decline. There was a steady decline below the $2,650 and $2,550 support levels. ETH trimmed most gains from $2,099 and retested the $2,300 support zone.

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The price is now consolidating near the $2,400 level. On the upside, the price could face hurdles near the $2,600 level. The first major resistance sits near the $2,800 level and the 50-day simple moving average (blue).

The next resistance is near the $3,000 level. There is also a major bearish trend line forming with resistance at $3,000 on the daily chart. It is close to the 61.8% Fib retracement level of the downward wave from the $3,566 swing high to the $2,099 low.

A clear move above the $3,000 level could open the doors for a move toward the $3,220 level. If ETH bulls push the price above the $3,220 resistance, there could be a steady increase. In the stated case, the price could rise toward the $3,550 level. Any more gains might initiate a move toward the $3,800 zone.

More Downsides In ETH?

Conversely, Ethereum might extend losses below the $2,350 level. Immediate support is near the $2,300 level. The first major support sits near the $2,220 level. The next major support sits near the $2,100 level. A daily close below the $2,100 level might send ETH toward the $2,000 support.

A clear downside break and close below the $2,000 support zone could initiate a larger decline. The next major support is near the $1,880 level. Any more losses might send Ether toward the $1,750 support.

Overall, Ethereum price is showing bearish signs below $2,650 and $2,800. A close below $2,300 could send the price toward $2,100 or even $2,000 in the coming weeks.

Aayush Jindal

Aayush specializes in market strategies and technical analysis, and spent over a DECADE as a financial markets contributor and observer.

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