Ethereum, Bearish Signals Expanding..."Failure to Recover $2,100 is a Fatal Blow"

▲ Ethereum (ETH)

After Ethereum failed to recover $2,100 and fell below $2,050, the question of whether the $2,000 support line can be defended has emerged as a more urgent market variable than a short-term rebound.

According to cryptocurrency specialized media NewsBTC on May 28 (local time), Ethereum (ETH) fell back below $2,080 and remained in a bearish zone. Ethereum continues to trade below $2,050 and the 100-hour simple moving average, and a bearish trend line with resistance at $2,040 has formed on the Ethereum/USD 1-hour chart.

Ethereum failed to maintain a stable trend above $2,100, then successively fell below $2,080 and $2,065. Subsequently, it dropped below $2,050, forming a low of $2,009, and showed bearish signals in a zone lower than the Fibonacci 23.6% retracement level of the downtrend from the high of $2,138 to the low of $2,009.

NewsBTC analyzed that if Ethereum holds above $2,000, it could attempt a rebound. The immediate resistance is $2,040, and the first key resistance is suggested at $2,060. The next major resistance is around $2,090 or the Fibonacci 61.8% retracement level of the downtrend.

A clear break above the $2,090 resistance could see Ethereum head towards the $2,120 resistance. If an upward breakout occurs beyond the $2,120 level, the possibility of further gains increases over the next few days, potentially rising to the $2,150 resistance zone or even $2,200 in the short term, according to the analysis.

Conversely, if Ethereum fails to break the $2,090 resistance, a new downtrend could begin. In case of a decline, the initial support is $2,000, and the first major support is located in the $1,965 area. If the $1,920 support clearly breaks, it could fall to the $1,880 support, and if further losses continue, it could drop to the $1,840 area. The major support is suggested at $1,750. The 1-hour Moving Average Convergence Divergence (MACD) is accelerating in the bearish zone, and the 1-hour Relative Strength Index (RSI) remains below 50.

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