Ethereum 'Shaken' to Last Line of Defense... Sell-Off Warning on Failed Recovery

▲ Ethereum (ETH)

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

According to crypto media outlet NewsBTC on May 8, Ethereum began a downward correction below the $2,365 level, then fell below the $2,320 and $2,300 marks in succession. On the hourly ETH/USD chart, a bearish trend line with resistance around $2,315 has formed.

Selling pressure pushed the price below the Fibonacci 50% retracement level of the upward move from the $2,220 low to the $2,423 high. Subsequently, buying pressure emerged 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 has been presented as immediate resistance. The key resistance is $2,320, followed by a major resistance at $2,350. If a clear break above $2,350 is confirmed, the rebound could extend to the $2,400 resistance. If Ethereum surpasses the $2,400 level, it could target the $2,440 or $2,450 resistance zones in the short term.

Conversely, failure to break above the $2,320 resistance could initiate a new downtrend. Initial support on the downside is $2,265, which coincides with the Fibonacci 76.4% 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 lower to the $2,200 range, and major support is presented at $2,150. The hourly Moving Average Convergence Divergence (MACD) has gained strength in the bearish zone, and the hourly Relative Strength Index (RSI) has fallen below 50.

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