"Buying pressure collapsing"...Ethereum, at risk of falling to $2,080

▲ Ethereum (ETH)

After failing to settle above $2,300, Ethereum is showing bearish signals, raising concerns about a short-term correction.

NewsBTC reported on May 14 (local time) that Ethereum (ETH) began a new downward trend by falling below $2,265, and is currently consolidating its losses above $2,220. According to the article, Ethereum failed to maintain a stable trend above $2,300 and, like Bitcoin (BTC), successively broke out of the $2,280 and $2,265 ranges.

Ethereum also traded below $2,250, with a low formed at $2,233. Subsequently, it attempted some recovery by surpassing the Fibonacci 23.6% retracement level of the downward range from the high of $2,322 to the low of $2,233. However, the price still remains below $2,280 and the 100-hour simple moving average, and a bearish trend line forming resistance near $2,285 appeared on the ETH/USD hourly chart based on Kraken data.

If buying pressure holds above $2,220, Ethereum could attempt a rebound again. Immediate resistance is at $2,265, and the first key resistance is at $2,285. This zone coincides with the Fibonacci 61.8% retracement level of the downward range from the high of $2,322 to the low of $2,233 and the bearish trend line.

The next major resistance is at $2,320. If Ethereum clearly breaks above the $2,320 resistance, it could rise to the $2,350 resistance, and if the break above the $2,350 range continues, further upside potential towards the $2,400 or $2,420 resistance zones was suggested in the short term.

Conversely, if Ethereum fails to overcome the $2,285 resistance, a new downward trend could begin. Initial support is at $2,250, and the first major support is at $2,220. A clear break below the $2,220 support could push it down to the $2,180 support, and if further losses continue, the $2,120 range and the major support of $2,080 were mentioned as the next defense lines.

Technical indicators also pointed to a bearish trend. The ETH/USD hourly Moving Average Convergence Divergence (MACD) is gaining momentum in the bearish zone, and the hourly Relative Strength Index (RSI) remains below 50. According to the article, Ethereum's major support is presented at $2,220, and major resistance at $2,285.

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