On Wednesday, the price of Ethereum crashed to $2395, forming a new weekly low there

Ethereum chart analysis

On Wednesday, the price of Ethereum crashed to $2395, forming a new weekly low there. On Monday evening, the price was trying to maintain itself at $2680. EMA 200 moving average pressure from the upside influenced us to make a breakout below on Tuesday. A strong bearish consolidation continued throughout the day up to the $2420 level.

We didn’t manage to hold on there either, but we fell to this morning’s low. After that, Ethereum stopped further retreat and returned above the $2450 level. We are currently trying to hold in this zone to try to move above the $2500 level. Today’s resistance is at the $2485 level, and we need a bullish impulse to break above.

There has been a bearish trend since Saturday; do we have the strength to stop further decline?

By moving above $2500, Ethereum would have good initial momentum to initiate a longer bullish consolidation. Potential higher targets are the $2550 and $2600 levels. At the $2600 level, we will test the EMA 50 moving average, while the EMA 200 is the moving average in the $2650 zone. If the price manages to return above them, it will erase a large part of the previous loss.

On the other hand, a bearish scenario could unfold if Ethereum undergoes a negative consolidation and its price drops below the $2400 level. Such a drop could exert pressure on the previous low, potentially leading to a new low and confirming the bearish momentum. In this case, we would need to observe further price pullback and the testing of lower support levels, with potential targets at the $2350 and $2300 levels.