Ethereum Plunges 10%, Struggles to Hold $2,500

Ethereum's price has taken a significant dip, falling by over 10% and struggling to maintain the $2,500 level. The decline began after the cryptocurrency failed to break through the $2,850 resistance zone, mirroring a similar trend seen in Bitcoin.

The sell-off has been particularly pronounced below the $2,650 level, with Ethereum now trading below the 100-hourly Simple Moving Average and the $2,750 mark. A short-term bearish trend line has formed on the hourly chart of ETH/USD, with resistance at around $2,600. However, if the price can settle above $2,600 and $2,650, it could potentially start a decent upward move.

Ethereum's price has since consolidated losses below the 23.6% Fib retracement level of the downward move from the $2,854 swing high to the $2,458 low. On the upside, the price seems to be facing hurdles near the $2,550 level, with the first major resistance at around $2,600. The main resistance is now forming near $2,650 or the 50% Fib retracement level of the same downward move.

A clear move above the $2,650 resistance might send the price toward the $2,750 resistance. An upside break above the $2,750 resistance might call for more gains in the coming sessions, potentially pushing Ethereum toward the $2,850 resistance zone or even $2,920 in the near term.

However, if Ethereum fails to clear the $2,600 resistance, it could start another decline. Initial support on the downside is near the $2,550 level, with the first major support sitting near the $2,450 zone. A clear move below the $2,450 support might push the price toward the $2,320 support. Any more losses might send the price toward the $2,250 support level in the near term, with the next key support sitting at $2,120.

The hourly MACD for ETH/USD is gaining momentum in the bearish zone, while the R