Ethereum, If 'This' Breaks, It's Over... Fear of $2,000 Crash Erupts

▲ Ethereum (ETH)

Ethereum (ETH) entered a downward correction after failing to hold the $2,120 level, showing signs of slowing buying interest. To continue its short-term rebound, it needs to recover the $2,110 and $2,120 resistance levels, but selling pressure has increased again on the charts, raising investor vigilance.

NewsBTC reported on May 26 (local time) that Ethereum fell below the $2,110 level, then slipped below $2,095 and the 100-hour Simple Moving Average. Ethereum also broke below the ascending trend line that was forming support at $2,105 on the hourly ETH/USD chart. This chart data was based on Kraken data.

The downward trend began when it failed to maintain the $2,120 level. Ethereum pushed below $2,110 and $2,100, widening its decline, and also gave up the 38.2% Fibonacci retracement level of the upward move from the $2,000 low to the $2,148 high. However, buying interest defended around $2,080.

For a short-term rebound, it needs to overcome immediate resistance near $2,110. The first key resistance level is stated as $2,120, and the next major resistance level is $2,150. An analysis suggests that a clear break above $2,150 would open the way for a rise to the $2,220 resistance level, and if it surpasses the $2,220 range, it could short-term reach the $2,250 or $2,320 resistance zones.

Conversely, if Ethereum fails to overcome the $2,120 resistance, further declines could resume. The first support level below is around $2,075, and the first major support level is $2,060. The $2,060 level coincides with the 61.8% Fibonacci retracement of the upward move from the $2,000 low to the $2,148 high.

If the $2,060 support level clearly breaks, Ethereum could fall to the $2,020 support level. If further losses continue, it could drop to the $2,000 range, with a major support level suggested at $1,940. The hourly Moving Average Convergence Divergence (MACD) is gaining strength in the bearish zone, and the hourly Relative Strength Index (RSI) has fallen below 50.

*Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*