ETH also started a major decline like Bitcoin and broke the $2200 support zone.
Ethereum price fell and soared below $2,000 on Kraken. ETH is now recovering above the $2,200 level, but the bears could be active near $2,300. Ethereum started a major decline and fell below the $2200 support. The price is trading below $2300 and the 100 hourly simple moving average.
A connecting bearish trend line is forming with resistance near $2,300 on the hourly chart of ETH/USD (data feed via Kraken). The pair could continue to rise if there is a clear move above USD 2,290 and USD 2,300.
Ethereum Price Plummets
Ethereum price struggled to settle above the $2,400 resistance zone. There was a sharp drop and the price even spiked below the $2,000 support zone. A new yearly low was formed near $1,860 and the price is now recovering from the losses.
There was a decent rise above the $2,000 and $2,080 resistance levels. The price rose above the 50% Fibonacci retracement level of the downward move from the high of $2,430 to the low of $1,860.
However, Ethereum is still below $2,300 and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $2,290 level. The first major resistance is now near $2,300.
There is also a connecting bearish trend line forming with resistance near $2,300 on the hourly chart of ETH/USD. The trend line is near the 76.4% Fibonacci retracement level of the downward move from the high of $2,430 to the low of $1,860.
A close above the $2,300 resistance could send the price towards $2,400. The next key resistance is near $2,440. If there is a clear move above $2,400, there could be a trend towards $2,500. The next resistance lies at $2,500, above which Ethereum could rally and test the $2,620 area.
New Fall in ETH?
If Ethereum fails to overcome the $2,300 resistance, it could start a new decline. The initial support on the downside is near the $2,200 level. The first key support could be the $2,080 area. A break lower and close below $2,080 could start another steady decline. In the given case,
Ether could test the $2,000 support. Any further losses could send the price towards the $1,860 level.
Ethereum is trading above $2,200 despite constant profit-taking by ETH traders since October 2023. Ethereum price could recover to $2,551, the 61.8% Fibonacci retracement of ETH’s decline from its April 22 high of $3.582 to its June 22 low of $883.42. A daily close below the 50% Fibonacci at $2,232 could invalidate the bullish thesis for Ethereum price.
MACD Hourly Technical Indicators
The MACD for ETH/USD is regaining momentum in the bullish zone.
Hourly RSI: The RSI for ETH/USD is now above the 50 level.
Major Support Level: $2,180.
Major Resistance Level: $2,300.
ETH Forecasts
According to CryptoPredictions, Ethereum started January 2024 at $2,279,941 and is expected to end the month at $2,382,368. During January, the expected maximum price of ETH is $2,598,925 and the minimum is $1,767,269.
ETH price for today (04.01.2024) is forecast to be in the price range of $2,003,557 – $2,946,408. Ethereum price is expected to end at $2,357,126 today.
The price of ETH is expected to be in the price range of $2,043,628 – $3,005,336 tomorrow (01/05/2024). Tomorrow Ethereum is expected to start at $2,404,269 and end the day at $2,476,397.
By Audy Castaneda
