Ethereum Price Downtrend Gains Pace—Is A Steeper Drop Ahead?

TL;DR

Ethereum price is in a downtrend, trading below $2,265 and struggling to recover above $2,220. A break below key support levels indicates potential for further declines.

Key points

Ethereum price started a decline below $2,280
Price is trading below $2,300 and the 100-hourly SMA
Break below a rising channel with support at $2,295

Ethereum price started a fresh decline and traded below $2,265. ETH is now consolidating above $2,220 and might struggle to recover.

Ethereum started a downside correction below the $2,280 zone.
The price is trading below $2,300 and the 100-hourly Simple Moving Average.
There was a break below a rising channel with support at $2,295 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it stays above the $2,220 zone.

Ethereum Price Dips Further

Ethereum price failed to remain stable above $2,320 and started a downside correction, like Bitcoin. ETH price dipped below the $2,300 and $2,280 levels.

There was a break below a rising channel with support at $2,295 on the hourly chart of ETH/USD. The price even spiked to $2,220. A low was formed at $2,220, and the price is now consolidating losses. There was a minor upward move above the 23.6% Fib retracement level of the downward move from the $2,345 swing high to the $2,220 low.

Ethereum price is now trading below $2,280 and the 100-hourly Simple Moving Average. If the bulls remain in action above $2,220, the price could attempt another increase. Immediate resistance is seen near the $2,265 level.

Source: ETHUSD on TradingView.com

The first key resistance is near the $2,280 level and the 50% Fib retracement level of the downward move from the $2,345 swing high to the $2,220 low. The next major resistance is near the $2,300 level. A clear move above the $2,300 resistance might send the price toward the $2,345 resistance. An upside break above the $2,345 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,400 resistance zone or even $2,420 in the near term.