Ethereum Price Plunges 10%: Is It the Right Time to Buy?

Ethereum has dropped significantly, falling below $2,500, with recent lows near $2,120. Market conditions are unstable, showing potential for further declines. Resistance levels stand at $2,250 and $2,340, while key support is seen at $2,200 and below. Investors should pay attention to market indicators as they navigate this volatile environment, which could affect future price movements.

Ethereum has faced a notable drop recently, plunging nearly 10% to slip under the critical $2,500 support level, aligning its trends with Bitcoin’s downward slide. The recent lows saw Ethereum (ETH) fall below $2,350 and even touch $2,120. At present, there’s a mixture of uncertainty with the market trying to consolidate but investors remain sceptical about further losses.

After reaching a bottom of $2,120, Ethereum is now attempting to bounce back, recently pushing past $2,200. This uptick also allowed Ethereum to surpass the 23.6% Fibonacci retracement mark from its previous fall, which extended from $2,568 to $2,114. However, despite this brief recovery, ETH is still struggling to maintain levels above $2,300, as well as the 100-hour simple moving average.

The path to recovery isn’t smooth, with Ethereum battling resistance at around $2,250. An important bearish trend line can be identified on the hourly chart of ETH/USD, presenting further resistance near $2,280. The next significant hurdle stands close to the $2,340 level, which aligns with the 50% Fibonacci retracement of the noted decline.

If Ethereum fails to breach the $2,340 resistance, there’s a risk it could drop again. Initial support is seen near $2,200, while the next major support is pegged in the $2,150 vicinity. Should the price decline further, it may target the $2,120 support level, and continued downturns could potentially lead to $2,050.

The indicators aren’t looking quite optimistic either; a bearish momentum is indicated on the hourly Moving Average Convergence Divergence (MACD), reinforcing concerns of an impending further drop. Additionally, the hourly Relative Strength Index (RSI) is currently below 50, highlighting persistent selling pressure on Ethereum.

Overall, current technical metrics suggest Ethereum may struggle to maintain any price recovery momentum. The hourly MACD hints at a steady increase in bearish strength, while disappointment lingers with the RSI indicating a lack of buying enthusiasm.

Nonetheless, for Ethereum to reclaim some ground, it needs to decisively break through resistance at $2,340. Should it manage that, there’s a potential return to the $2,400 range—and maybe even towards $2,500.

While the current landscape for Ethereum may seem daunting, it’s clear there remains a flicker of hope for recovery, provided it passes key resistance levels. Investors should remain vigilant, closely monitoring technical signals along with the support and resistance dynamics to navigate the uncertain waters ahead.

For any aspiring traders and investors, tools like the Pintu crypto app are readily available for a secure trading experience. The app enables advanced trading functionalities, where you can engage in futures trading or easily chart your portfolios, bringing the crypto market’s intricacies right to your fingertips.