The ongoing struggle for Ethereum (ETH) price: Will it dip below $2000?
The cryptocurrency market is witnessing a rollercoaster ride as the Ethereum price plunges close to $82,000 before recovering to above $86,000. Meanwhile, Bitcoin seems to be holding its ground, but Ethereum is facing massive bearish pressure. The start of the week was particularly harsh for the second-largest token, as it struggled to break past the resistance at $2772. However, the weekend trade saw a swift decline, with the price plummeting by over 17% and dropping below $2,300.
Despite some buying pressure from the Asian markets, Ethereum’s price action is displaying clear signs of weakness, indicating that bears are still in control. The price is currently hovering above $2,300 but is struggling to maintain these levels. This suggests that a further downtrend is likely, with a potential break below the critical support level at $2,024.
The chart above indicates that Ethereum is at a crucial juncture, where a potential rebound could prevent further bearish activity. However, the token is on the verge of experiencing a ‘Death Cross,’ which could lead to a 20% pullback in the coming days. In a similar scenario back in August 2024, Ethereum faced a death cross and consolidated around the support zone before dropping to $2,131.
If Ethereum fails to hold within the current support zone between $2,301 and $2,336, a drop to $1,822 could be on the horizon. While support levels at $2,294 and $1,930 may provide a temporary base for a rebound, breaking below $2000 could trigger further pullback towards the demand zone. If history repeats itself, Ethereum could undergo prolonged consolidation before any significant bullish movement.
With the MACD showing a bearish crossover in the negative range, the outlook for Ethereum’s price rally remains bleak. Traders should brace themselves for the possibility of Ethereum dipping below $2000 in the near future.