The financial markets reacted quickly to the historic move on Russia invading Ukraine. Ethereum lost 10% of its price overnights, declining beneath the $2,500 mark.
Vital support areas – $2,200 and $1,900
Vital resistance zone – $2,500
The ongoing broad market sell-off had Ethereum violating the support of $2,500. That opened the road for a potential fall to $2,200, the first dependable barrier that may halt further declines. For now, the market appears grim as the previous support floor of $2,500 turned into a resistance. The U.S stock markets will open later today and might drag Ethereum lower.
ETH Extends Downside
Ethereum could not break past the $2,750 mark as massive selling influence triggered a sharp plummet beneath the $2,650 barrier. Meanwhile, Russia-Ukraine’s military operations increased selling momentum. That had Ethereum nosediving to levels beneath $2,500 support. Furthermore, the leading altcoin plunged beneath the footing of $2,420, settling beneath 100-hr Simple Moving Average.
Besides, ETH broke beneath a crucial bullish trend with support around $2,680 on ETH/USD’s hourly chart. Ethereum declined to test $2,300 and consolidates losses at this writing. While publishing this blog, Ethereum traded at $2,378.94
The closest resistance to the upside stands at $2,400. It sits near 23.6% Fibonacci retracement of the latest drop to $2,302 from a swing high at $2,752. However, the initial massive resistance stands at $2.5K and $2,520.
The 50% Fibonacci retracement mark of the latest fall to $2,302 from $2,752 also sits around $2,520. For now, the main resistance develops near $2,650 and 100hr SMA. A decisive move past $2,650 might kick-start steady upsurges.
More Losses in Ethereum?
Ethereum might see continued downtrends if it fails to rally past $2,400. The first support to the downside sits at $2,300. The following sturdy support sits at $2,250. Losing this barrier will see the leading alt at $2,200. Additional pressure might trigger near-term lows of $2,050.
ETH Technical Indicators
Today trading volume increases while in the red, suggesting intensifying bearish momentum.
The daily Relative Strength Index nears the oversold territory, possibly dropping to levels below the 30-mark.
The daily MACD displayed a lower low while flashing bearish signals.