Ethereum price extended its decline, breaking below the $2,000 psychological threshold and touching a low of $1,965 before attempting a minor recovery. The second-largest cryptocurrency by market cap is now consolidating near $2,000 but remains under pressure as selling momentum persists. ETH is trading below both the $2,010 resistance level and the 100-hourly Simple Moving Average, signaling bearish conditions in the short term.
Technical analysis reveals a break below a bullish trend line with support at $2,015 on the hourly chart of ETH/USD, a pattern that often confirms downside momentum. The price failed to reclaim the $2,040 zone after a brief bounce, which saw it test the 23.6% Fib retracement level of the recent decline from the $2,140 swing high. Bears remain active near $2,040, and the failure to hold above $2,020 suggests selling pressure could persist.
Ethereum's decline comes amid a broader crypto market sell-off, with Bitcoin also retreating from key support levels. The correlation between major digital assets remains strong, and ETH's inability to decouple from BTC's price action leaves it vulnerable to further losses. If the broader market sentiment turns more risk-averse, Ethereum could face additional headwinds.
The $1,965 low represents a critical near-term support level; a break below that could open the door to a test of the $1,900 region. On the upside, ETH needs to reclaim the $2,050 zone to shift momentum, with resistance clusters at $2,040 and the 100-hourly SMA. Trading volumes and on-chain activity will be key indicators to watch for signs of accumulation or continued distribution.
A counter-argument suggests that the recent bounce from $1,965 could mark a local bottom, especially if broader market jitters fade. Some analysts point to oversold conditions on shorter timeframes, which could trigger a relief rally toward $2,050 or higher. However, without a decisive break above $2,040, the path of least resistance remains to the downside.