"Buying Pressure Collapsing"...Ethereum at Risk of Dropping to $2,080

▲ Ethereum (ETH)

Ethereum is raising concerns about a short-term correction, showing bearish signals after failing to settle above $2,300.

NewsBTC reported on May 14 (local time) that Ethereum (ETH) began a new downward trend by falling below $2,265, and is currently consolidating losses above $2,220. According to the article, Ethereum failed to maintain a stable trend above $2,300, and like Bitcoin (BTC), it successively broke below the $2,280 and $2,265 levels.

Ethereum also traded below $2,250, with a low forming at $2,233. Subsequently, it attempted some recovery, surpassing the 23.6% Fibonacci retracement level of the downtrend from the high of $2,322 to the low of $2,233. However, the price still remains below $2,280 and the 100-hour simple moving average, and according to Kraken data, a bearish trendline forming resistance near $2,285 appeared on the ETH/USD hourly chart.

If buying pressure holds above $2,220, Ethereum could attempt a rebound. The immediate resistance is $2,265, and the first key resistance is $2,285. This zone is where the 61.8% Fibonacci retracement level of the downtrend from the high of $2,322 to the low of $2,233 overlaps with the bearish trendline.

The next major resistance is $2,320. If Ethereum clearly surpasses the $2,320 resistance, it could rise to the $2,350 resistance, and if the break above the $2,350 level continues, further upside towards the $2,400 or $2,420 resistance zones is suggested in the short term.

Conversely, if Ethereum fails to overcome the $2,285 resistance, a new downward trend could begin. The initial support is $2,250, and the first major support is $2,220. A clear break below the $2,220 support could push it down to the $2,180 support, and if further losses continue, the $2,120 level and the major support of $2,080 were mentioned as the next lines of defense.

Technical indicators also pointed to a bearish trend. The ETH/USD hourly Moving Average Convergence Divergence (MACD) is building momentum in the bearish zone, and the hourly Relative Strength Index (RSI) remains below 50. According to the article, Ethereum's major support is presented as $2,220, and major resistance as $2,285.

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