Ethereum is preparing for a new bull rally

The price of Ethereumhas begun a sharp drop below the $ 2,300 pivot level. It is noteworthy that the flagship crypto asset BTC $56,506.40 Bitcoin -1.08% Market capitalization $1.11 trillion VOL. 24 hours $2.78 billion also started a bearish trend.

Over the course of the day, the leading altcoin dropped below $ 2,220 and $ 2,200. Finally, it tested support at $ 2,000 before showing signs of a bullish trend. The low was formed at $ 1,980, and now the price is trying to rise on the wave of recovery. There was a move above the resistance levels of $ 2,120 and $ 2,150. The bulls pushed the price above the 50% Fibonacci retracement level.

Ethereum is currently trading below $ 2,320 and the 100-hour simple moving average. On the other hand, the price is facing resistance near the $ 2,250 area. On the hourly chart of ETH/USD, a key bearish trend line is also forming with resistance near $ 2,240.

The next key resistance is at $ 2,275. A clear move above the $ 2,300 area could send the price to $ 2,400. The next resistance is at $ 2,450. Any further growth could trigger a wave to the $ 2,500 level.

If Ethereum fails to overcome the resistance at $ 2,275, a new decline may begin. The initial support on the downside is at $ 2,155.

The next key support is $ 2,120. The main support is now at $ 2,100. A breakdown could lead to another significant decline. In this case, ethereum could return to the $ 2,000 support level. Any further losses could lead to a test of the $ 1,880 support zone in the short term.

Technical indicators

• The hourly MACD for ETH/USD is losing momentum in the bearish zone.
• The hourly RSI for ETH/USD is now below 30.
• The main support level is $ 2.155
• The main resistance level is $ 2.275