Ethereum price stabilized above $2,050 on Monday after a sharp selloff pushed the second-largest cryptocurrency to a low of $1,914 on Kraken. The digital asset has recovered some ground but remains in a bearish zone, trading below the $2,165 level and the 100-hourly Simple Moving Average (SMA). A connecting trend line with support at $2,020 has formed on the hourly chart, suggesting further downside risk.
The current consolidation follows a failed attempt to hold above the $2,200 zone. ETH dipped below $2,165 and $2,150 before accelerating losses. Analysts point to bearish momentum as the primary driver, with recovery capped by resistance levels. The token now trades at roughly 61.8% Fib retracement of the move from the $2,198 high to the $1,914 low, a key technical point.
Data shows ETH/USD is testing support around $2,020 on the hourly timeframe. Trading below the 100-hourly SMA indicates short-term bearish pressure. Should bulls defend the $2,020 level, a countermove toward immediate resistance at $2,150-$2,165 is possible. Failure to hold could see a retest of the recent $1,914 bottom.
Market participants are watching whether ETH can reclaim the $2,200 threshold to reverse the current trend. A sustained break above this level would signal renewed buying interest. However, without a catalyst, the bearish setup suggests continued consolidation or further declines in the near term.
Some analysts argue the stabilization above $2,050 could be a bear flag pattern, pointing to more downside. Others caution that low volume during consolidation makes technical signals unreliable, leaving the market vulnerable to sudden moves in either direction.