Ethereum Drops Below $2,000 as Bearish Pressure Mounts

Ethereum (ETH) has failed to maintain its position above the $2,000 mark, despite briefly reaching this threshold following the recent Federal Open Market Committee (FOMC) meeting. The bullish momentum that initially propelled ETH to this level has since dissipated, and the cryptocurrency is now showing signs of weakness.

Technical indicators, including the Relative Strength Index (RSI) and the Directional Movement Index (DMI), suggest increasing bearish pressure in the short term. The RSI, which measures the speed and change of price movements, has dropped sharply to 46.63 from 71 just two days ago. This indicates that the recent bullish momentum has faded, and ETH has entered neutral territory.

The DMI chart for ETH shows that the Average Directional Index (ADX) has decreased to 17.96 from 24.5, indicating a weakening trend strength. Additionally, the +DI has fallen to 21.17 from 34, signaling that bullish momentum is waning. Meanwhile, the -DI has climbed to 23.12 from 11.17, suggesting growing bearish pressure. With the ADX dropping and the -DI crossing above the +DI, ETH could face further downside or enter a consolidation phase as sellers gain more influence over price action.

Traders are now closely monitoring key support and resistance levels to determine whether ETH will continue its correction or attempt a recovery. If the current downtrend persists, ETH could test key support levels at $1,867 and $1,823. A break below these zones could open the door for a deeper decline toward $1,759, with the risk of ETH falling below $1,700 for the first time since October 2023.

However, if ETH manages to reverse the current downtrend and regain bullish momentum, it could push toward resistance at $2,106. A stronger rally could see ETH aiming for $2,320 and even $2,546, offering a potential upside of around 30% from current levels.

In summary, Ethereum's failure to retain the $2,000 mark and the increasing bearish pressure indicated by technical indicators suggest a period of consolidation or further downside risk. Traders are advised to closely monitor key support and resistance levels to make informed decisions about their positions.