Ethereum Drops 3% as Bearish Trend Continues

Ethereum's price has recently experienced a downturn, falling from a high of $2,520. The cryptocurrency is now trading below $2,450 and is struggling to maintain its position above the $2,350 support level. This decline is part of a broader bearish trend that has seen Ethereum drop below several key support levels, including $2,500 and $2,450.

The price of Ethereum has broken below a crucial bullish trend line, which had support at $2,450 on the hourly chart. This break indicates a potential shift in market sentiment, with sellers gaining control. The cryptocurrency even briefly dipped below the $2,400 level, reaching a low of $2,373 before attempting to recover some of its losses.

Currently, Ethereum is trading below $2,450 and the 100-hourly Simple Moving Average. On the upside, the first resistance level is near $2,420, with the next key resistance at $2,450. This level is close to the 50% Fibonacci retracement level of the downward move from the $2,523 swing high to the $2,373 low. A clear move above the $2,465 resistance could potentially send the price toward the $2,520 resistance.

If Ethereum fails to clear the $2,450 resistance, it could start a fresh decline. Initial support on the downside is near the $2,375 level, with the first major support sitting near the $2,350 zone. A clear move below the $2,350 support might push the price toward the $2,280 support, with further losses potentially sending the price toward the $2,220 support level. The next key support sits at $2,150.

Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bearish zone, while the RSI for ETH/USD is now below the 50 zone. These indicators point to a potential continuation of the bearish trend in the near term. However, if Ethereum can remain stable above the $2,350 zone, it could potentially start a fresh increase.