Ethereum Price Struggles While Bitcoin Jumps – Why ETH Could Take Major Hit

Republished By Plato

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Ethereum price is still struggling to climb again above $2,250 while Bitcoin broke $43,500. ETH is showing a few concerning signs and might take a major hit.

Ethereum is struggling to gain pace for a move above the $2,250 resistance zone.
The price is trading below $2,220 and the 100-hourly Simple Moving Average.
There is a key bullish trend line forming with support near $2,170 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could decline heavily if it stays below $2,250 for a long time.

Ethereum Price Faces Hurdles

Ethereum price made another attempt to clear the $2,250 and $2,265 resistance levels. However, ETH failed to settle above the $2,250 resistance. There are clearly more than two rejections noted near the $2,250 and $2,265 levels.

On the other hand, Bitcoin gained pace for a move above the $43,500 resistance. This could be a warning sign for ETH bulls. The recent low was formed near $2,155 and the price is now consolidating. It is above the 23.6% Fib retracement level of the recent decline from the $2,265 swing high to the $2,155 low.

There is also a key bullish trend line forming with support near $2,170 on the hourly chart of ETH/USD. Ethereum is now trading below $2,220 and the 100-hourly Simple Moving Average.

On the upside, the price is facing resistance near the $2,210 level. It is close to the 50% Fib retracement level of the recent decline from the $2,265 swing high to the $2,155 low. The next key resistance is near the $2,250 level or $2,265. A clear move above the $2,2650 zone could send the price toward the $2,320 level.

Source: ETHUSD on TradingView.com

The next resistance sits at $2,365. Any more gains could start a wave toward the $2,450 level, above which Ethereum might rally and test the $2,500 zone.

More Losses in ETH?

If Ethereum fails to clear the $2,250 resistance, it could start another decline. Initial support on the downside is near the $2,170 level and the trend line.

The first key support could be the $2,120 zone. A downside break and a close below $2,120 might spark strong bearish moves. In the stated case, Ether could revisit the $2,000 support. Any more losses might send the price toward the $1,880 level in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $2,170

Major Resistance Level – $2,250

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