TLDR
- Ethereum price is currently trading around $2,060 after finding support at $1,980
- A bearish trend line with resistance at $2,050 is forming on the hourly chart
- ETH must clear $2,050 and $2,100 resistance levels to start an upward trend
- Some analysts predict a potential breakout above $2,128 based on liquidity zones
- Long-term charts show concerning patterns including a triple-top formation and bearish flag
Ethereum, the second-largest cryptocurrency by market cap, has entered a period of price consolidation after experiencing a pullback from recent highs. The digital asset is currently trading near the $2,060 level with a total market value of approximately $250 billion.
ETH recently found support at the $1,980 zone after declining below several key levels. This came after the price failed to maintain momentum above the $2,100 mark.
ETH Price
Technical analysis indicates a connecting bearish trend line forming with resistance at $2,050 on the hourly chart. The price is trading below both $2,040 and the 100-hourly Simple Moving Average.
For Ethereum to begin a fresh upward move, it must overcome several key resistance points. The first hurdle appears at $2,040, which coincides with the 50% Fibonacci retracement level of the recent decline from $2,097 to $1,982.
The $2,050 level represents the next significant barrier. If buyers can push the price above this point, the next major challenge lies at $2,100.
A successful break above $2,100 could potentially trigger a rally toward the $2,150 resistance. Further upside might see ETH approach the $2,250 or even $2,320 zones.
However, failure to clear these resistance levels could lead to renewed selling pressure. Initial support can be found at the $2,000 mark, with the first major support level at $1,980.
Should ETH drop below $1,980, the price might extend losses toward $1,920 and the trend line support. Further downside could target the $1,880 and $1,810 levels.
Market Analysis
Some market analysts have identified patterns suggesting potential upward movement. One analyst pointed to a mitigation block around $2,064, which often indicates strong buying interest from large investors.
These zones typically show where major players adjust their positions before continuing to push prices in a certain direction. According to this analysis, the target for ETH could be $2,128, described as a swing high liquidity zone.
Looking at the longer-term picture reveals more concerning patterns. On the weekly chart, ETH formed a triple-top pattern around the $4,000 level, testing this resistance in March, May, and November of last year.
This pattern consists of a top level and a neckline at approximately $2,138. The bearish outlook was confirmed when the price fell below this neckline, with ETH currently retesting this critical level.
Ethereum has dropped below both the 50-week and 200-week moving averages, as well as an ascending trendline that had supported the price since July 2022.
On the daily chart, ETH has stabilized after dropping from $1,763 to $2,130. However, it remains below the 50-day moving average, suggesting bears maintain control of market momentum.
A bearish flag pattern has formed, which often signals continuation of the prior downtrend. Similarly, a rising wedge pattern with converging trendlines indicates potential for a strong bearish breakdown.
If these bearish scenarios play out, the initial target would be $1,763, with a longer-term target potentially as low as $1,140 based on the triple-top measurement.
Alternatively, a move above $2,500 would invalidate the bearish outlook and potentially open the path toward $3,000. Ethereum’s trading volume over the past 24 hours stands at approximately $11.71 billion.
The cryptocurrency has gained about 6% over the past week, showing some recovery from recent lows. This comes despite ongoing competition from other layer-1 and layer-2 blockchains and ETF outflows affecting market sentiment.
The market appears to have largely overlooked the impact of Ethereum’s Pectra upgrade, focusing instead on broader market conditions and competitive pressures in the blockchain space.
