Ethereum plunges 10% as Russia-Ukraine tension escalates


Ethereum started a sharp decline, trading below USD 2,500 against the US dollar. ETH price plunges and continues to risk more downsides below $2,200.

Ethereum started a big drop after it failed to surpass 2,750. The price is now trading below USD 2,500 and the 100 hourly simple moving average. There was a break below a key bullish trendline with support near USD 2,680 on the ETH/USD hourly chart (data feed via Kraken). The pair could continue to fall if it remains below the USD 2,500 level.

Ethereum price prolongs decline

Ethereum attempted an upward breach above the $2,750 level but failed. ETH faced strong selling interest resulting in a sharp drop below the $2,650 level.

More importantly, Russia’s military operation also increased selling pressure. Ether price tumbled and even broke the USD 2,500 support level. There was a definite move below the USD 2,420 support and the price moved below the 100 hourly simple moving average.

Additionally, there was a break below a key bullish trendline with support near USD 2,680 on the ETH/USD hourly chart. It even tested the $2,300 level and is currently consolidating losses.

An immediate resistance on the upside is near the $2,400 level. It is near the 23.6% Fib retracement level from the recent drop from the swing high from $2,752 to $2,302 low. The first major resistance is seen near the USD 2,500 and USD 2,520 levels.

Source: ETHUSD on TradingView.com

The 50% Fib retracement level from the swing high’s recent decline from $2,752 to $2,302 low is also near the $2,520 level. The main resistance is now forming near the $2,650 level and the 100 hourly simple moving average. A clear move above $2,650 could trigger a steady rise.

Lose more in ETH?

If ethereum fails to start a wave of recovery above the $2,400 level, it could continue to fall. An initial support on the downside is near the USD 2,300 level.

The next major support is near the $2,250 level. A downward breach below the $2,250 support could push the price towards the $2,200 support level. If there are further losses, the bears could aim for the $2,050 level in the near term.

Technical indicators

Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now well below the 50 level.

Major Support Level – $2,300

Major Resistance Level – $2500

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