Ethereum (ETH) fell below $2,000 after failing to maintain gains above $2,050. Technical indicators are pointing bearish, suggesting that the second-largest cryptocurrency by market capitalization may face downward pressure towards the $1,900 support area due to trendline resistance located at $1,980 on the hourly chart.
What happened: ETH fell below $2,000
ETH has been trading below $2,000 and the 100-hour simple moving average after pulling back from a recent high near $2,169. This decline has pushed the price below the 50% Fibonacci retracement level of the rise from a low of $1,745 to a high of $2,169.
On the hourly ETH/USD chart, a descending trendline has formed with resistance around $1,980.
Buying pressure has been partially flowing in around $1,900, but the hourly MACD is still building bearish momentum in the bearish zone, and the RSI remains below 50.
On the upside, $2,000 and $2,020 serve as major resistance levels, and if the price breaks above $2,020, it could open up to $2,165 and potentially the range of $2,250 to $2,280. Conversely, if it fails to reclaim $2,000, the price could drop to $1,900, $1,850, and ultimately to the range of $1,720 to $1,750. Now, let's continue completing the article.
Also Read: Ethereum Stalls Below $2,050 As Bears Tighten Grip
Why it matters: Accumulation of bearish signals
From a technical perspective, a burdensome picture is unfolding for ETH holders. The hourly MACD is building bearish momentum, and the RSI is slipping below the neutral line of 50, indicating that the selling pressure is currently leading the price action.
The $1,900 range overlaps with the 61.8% Fibonacci retracement of the recent rally from $1,745 to $2,169, making it a very important defense line.
If this support level breaks down, lower target prices of $1,850, $1,820, and further down to the range of $1,720 to $1,750 could open up, which could effectively reverse most of the previous uptrend.
Read Next: Third-Largest Bitcoin Miner Sells 4,451 BTC Marking Pivot To AI
