Ethereum, 'Shaking' to the Last Line of Defense...Sell Warning Light on Recovery Failure

▲ Ethereum (ETH)

Ethereum (ETH) price entered a short-term bearish trend, expanding its decline after failing to hold the $2,350 range. With increasing correction pressure similar to Bitcoin (BTC), the breach of the $2,265 support level has emerged as a turning point for further declines.

According to NewsBTC, a cryptocurrency media outlet, on May 8, Ethereum began a downward correction below the $2,365 range, then successively fell below the $2,320 and $2,300 marks. On the ETH/USD chart based on hourly candles, a downward trend line with resistance around $2,315 was formed.

Selling pressure pushed the price below the 50% Fibonacci retracement level of the upward move from the $2,220 low to the $2,423 high. Subsequently, buying pressure entered around $2,265. Ethereum remains below $2,320 and the 100-hour simple moving average, facing pressure even in attempts for a short-term rebound.

On the upside, $2,300 was presented as an immediate resistance level. The key resistance is $2,320, and the next major resistance is $2,350. If a clear breakthrough of $2,350 is confirmed, the rebound could extend to the $2,400 resistance. When Ethereum surpasses the $2,400 range, it could target the $2,440 or $2,450 resistance zones in the short term.

Conversely, failure to break the $2,320 resistance could initiate a new downward trend. The initial support level on the downside is $2,265, which coincides with the 76.4% Fibonacci retracement level of the upward move from the $2,220 low to the $2,423 high. The first major support is $2,240, and the next support is $2,220. If further losses continue, the downside target will be lowered to the $2,200 range, and the major support is presented at $2,150. The hourly Moving Average Convergence Divergence (MACD) index gained strength in the bearish zone, and the hourly Relative Strength Index (RSI) fell below 50.

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