Ethereum, Consecutive Support Line Collapse...Is a Cruel Bear Market Opening?

▲ Ethereum (ETH)

Ethereum (ETH) has repeatedly failed to break through key resistance levels and has successively given up psychological support levels of $2,350 and $2,300, standing at the crossroads of further sharp declines.

According to a report by cryptocurrency media outlet NewsBTC on April 28 (local time), Ethereum has been on a sharp downward trajectory after confirming strong selling pressure at the $2,400 resistance level. Currently trading near $2,280, Ethereum remains below the 100-hour simple moving average, maintaining a clear bearish trend. Market analysts predict that further price corrections will be unavoidable if Ethereum fails to decisively break above the downtrend resistance line formed around $2,320.

The Moving Average Convergence Divergence (MACD), a technical indicator, is currently increasing its downward momentum in the bearish zone, and the Relative Strength Index (RSI) has fallen below 50, indicating that sellers are dominating the market. On the hourly chart, a strong downtrend line is observed with resistance around $2,320. If Ethereum fails to defend the $2,250 support level, there is a high risk of the price rapidly retreating past $2,200 to $2,120.

For Ethereum to reverse its downtrend, it must first reclaim both the $2,320 level and the 100-hour simple moving average. The first major resistance level is $2,350, and only if this is broken with significant trading volume can it get another chance to challenge $2,400. The $2,400 level has been a strong resistance zone that has thwarted several recent upward attempts, and a firm establishment above this point is expected to be a watershed for a full-fledged trend reversal in the future.

The overall contraction in market investor sentiment, with Bitcoin (BTC) dropping below the $77,000 mark, also weighs heavily on Ethereum. The volatility arising from the decrease in Ethereum's open interest and the liquidation of leveraged positions is fueling investor fear. Analysts are closely watching whether key support levels hold to determine if the current correction is merely a price stabilization process or the beginning of a long-term downtrend.

Ethereum is currently engaged in a tense tug-of-war between downward pressure and support defense, exploring its direction. The longer it consolidates below $2,300, the deeper the market's concerns about further declines are likely to become. Participants in the cryptocurrency market are focusing on risk management, preparing for price volatility due to the U.S. Federal Reserve's monetary policy direction and macroeconomic indicator announcements.

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