Ethereum price started a downside correction from the $2,420 zone after forming a swing high at $2,423. The cryptocurrency is now trading below $2,360 and the 100-hourly Simple Moving Average, signaling weakened short-term momentum.
A break below a bullish trend line with support at $2,365 on the hourly chart of ETH/USD (Kraken data feed) further cemented bearish pressure. The price even tested the 50% Fib retracement level of the upward move from the $2,220 swing low to the $2,423 high.
If Ethereum fails to hold above the $2,300 level, analysts suggest it could face further declines. The $2,320 support has so far provided a floor, but a sustained break below $2,300 would open the door to the $2,220 swing low.
On the upside, reclaiming the $2,365 region and the 100-hourly SMA could trigger a recovery toward the $2,420–$2,423 resistance zone. The immediate trajectory depends on whether bulls can defend the $2,300 support level.
Some traders remain cautious, noting that Ethereum's recent increase mirrored Bitcoin's move, and a broader crypto market downturn could amplify ETH's downside.