Ethereum Drops: Price Slide Sparks ‘Buy the Dip’ Debate

Ethereum made an attempt to surge above the $2,080 resistance area and even surpassed the $2,120 resistance, mirroring Bitcoin’s movement. Nevertheless, bearish activity emerged above $2,120.

The cryptocurrency reached a peak of around $2,132 before initiating a fresh downtrend. This led to a dip below the $2,080 mark, establishing a low near $2,037, and the current trend involves consolidating these losses. Ethereum is encountering difficulty below the 23.6% Fibonacci retracement level of the recent drop from the $2,132 high to the $2,037 low.

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Presently, Ethereum is trading below both $2,080 and the 100-hourly Simple Moving Average. Resistance is notable around the $2,065 zone, where a significant bearish trend line is forming on the hourly ETH/USD chart.

The primary resistance lies at the $2,100 level or the 61.8% Fibonacci retracement level of the recent decline from the $2,132 peak to the $2,037 low. If the price can convincingly breach the $2,100 level, it may target the $2,120 resistance area.

related: Ethereum Surges Past $2,100 as Whales Accumulate: On-Chain Data Signals Strong Bullish Momentum

Further hurdles exist near $2,135, and surpassing this level could propel Ethereum toward the $2,200 mark. Subsequent gains might instigate a push towards $2,250.

However, a failure to overcome the $2,080 resistance may trigger a renewed descent. Initial support is anticipated at around $2,035, followed by a pivotal support level at $2,000. A breach below $2,000 might propel Ether towards the $1,930 support, with a critical support level at $1,900. A further decline could pose the risk of a move towards the $1,840 level.