Ethereum's Price Drops 10% to $2,320, Bearish Trend Looms

Generated by AI AgentCoin World
Sunday, May 18, 2025 11:16 pm ET1min read
ETH
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Ethereum's price has been on a rollercoaster ride, correcting gains and testing the $2,320 zone. The cryptocurrency started a downward correction from the $2,580 zone, struggling to maintain its momentum. Currently, Ethereum is trading below $2,500 and the 100-hourly Simple Moving Average, indicating a bearish trend. A connecting bearish trend line is forming with resistance at $2,540 on the hourly chart of ETH/USD.

Ethereum's price has faced significant resistance at the $2,520 level, leading to a downside correction. The price traded below the $2,500 and $2,440 support levels, with bears pushing it below the 50% Fib retracement level of the upward move from the $2,308 swing low to the $2,509 high. However, bulls were active near the $2,400 zone, preventing a further decline. The price is now stable above the 61.8% Fib retracement level of the same upward move.

If Ethereum manages to clear the $2,550 resistance, it could gain strength and potentially rise toward the $2,580 resistance. A clear move above the $2,580 resistance might call for more gains, with Ether potentially rising toward the $2,700 resistance zone or even $2,780 in the near term. However, if Ethereum fails to clear the $2,500 resistance, it could start a fresh decline. Initial support on the downside is near the $2,400 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 $2,320 support, and any more losses might send the price toward the $2,220 support level in the near term. The next key support sits at $2,120.

Technical indicators suggest a bearish momentum for Ethereum. The MACD for ETH/USD is gaining momentum in the bearish zone, while the RSI for ETH/USD is now below the 50 zone. Major support and resistance levels are at $2,400 and $2,500, respectively. These indicators suggest that Ethereum's price is currently facing significant resistance and may continue to decline if it fails to break through key resistance levels.