Ethereum Price Prediction: ETH breakdown to $2,500 seems imminent

Published May 19, 2021 | Updated May 19, 2021

In Brief

Ethereum tumbles from $3,500 following challenges sustaining gains back to $4,000.

A four-hour close under the 200 SMA could validate the downswing to $2,500.

ETH-$2000

Ethereum Price Prediction: ETH breakdown to $2,500 seems imminent

Ethereum tumbles from $3,500 following challenges sustaining gains back to $4,000.

A four-hour close under the 200 SMA could validate the downswing to $2,500.

Ethereum has lost more than 30% of its value from the all-time high traded at $4,387. Initially, the correction was more like lock-step trading whereby short-term support levels prevented sharp losses. However, during the previous weekend session, the market instability saw Ethereum dive under $4,000 and tested support at $3,100.

A trend reversal occurred on Monday with Ether trading above $3,500, but the recovery was short-lived following another bearish jab in Wednesday’s Asian session. Ethereum dived back to $3,100 but this time extended the bearish leg under $3,000.

Ethereum hunts for formidable support

Ether is trading slightly above $2,900 at the time of writing. Losing the 200 Simple Moving Average Support (SMA) has drastically changed the short-term technical perspective. Therefore, all eyes are focused on Ether’s ability to hold $2,800.

ETH/USD four-hour chart

ETH/USD price chart
ETH/USD price chart by Tradingview

The various technical indicators like the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have vivid bearish signals, as highlighted on the four-hour chart.

For instance, the MACD has expanded the gap beneath the mean line (0.00). Moreover, the MACD line (blue) increasing divergence below the signal line is a massive bearish signal.

At the same time, the RSI is in a sharp downward movement toward the overbought region. This means that the path with the minor hurdles is south. Ethereum’s breakdown under $3,000 would trigger massive sell orders. The increase in overhead pressure will leave tentative support levels at $2,800 and $2,500 vulnerable to losses.

Ethereum intraday levels

Spot rate: $2,950

Volatility: Expanding

Trend: Bearish

Support: $2,800 and $2,500

Resistance: $3,200 and $3,600

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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John Isige 998 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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