- Ethereum price hits weekly low in three-day slide after breaking 200-day SMA support.
- Bearish RSI divergence and rejection from key resistance levels reinforce downside bias.
- Multiple trendlines mark $2,420 as key support, recovery remains elusive below $2,925.
Ethereum (ETH/USD) price renewed weekly low during Friday’s European session after breaking the 200-day Simple Moving Average (SMA), down over 4.0% intraday around $2,518 by the press time despite the latest corrective bounce.
Alongside a break below the 200-day Simple Moving Average (SMA), Ethereum (ETH) price forms a higher high while the 14-day Relative Strength Index (RSI) prints a lower high — signaling classic bearish divergence. Nonetheless, a convergence of key trendline supports poses a strong challenge to further downside in the ETH/USD pair.
ETH/USD: Daily chart shows bearish RSI divergence
ETH/USD: Daily chart shows bearish RSI divergence
Source: Tradingview
In addition to the breakdown of the 200-day SMA, bearish RSI divergence and Ethereum’s failure to clear key resistance levels earlier in the week are pressuring the price toward a critical support zone. This zone is marked by the convergence of a three-week-old ascending trendline and a rising support line from early April, near $2,420 at press time.
If the ETH/USD pair weakens further below $2,420, it becomes vulnerable to a deeper drop toward a strong four-month-old support area — between $2,150 and $2,090 — which also includes the 100-day SMA.
On the upside, the 200-day SMA at $2,646 caps immediate recovery attempts. A sustained move above this level would then face resistance from an upward-sloping trendline from late February, around $2,830.
Beyond that, horizontal resistance between $2,845 and $2,925 — built on price levels dating back to early January — will test buyer strength. A breakout above $2,925 could open the door for a run at the $3,000 psychological level, and potentially toward the late January swing high near $3,440.
ETH/USD: Four-Hour chart test bears
Source: Tradingview
Unlike the daily chart, the four-hour view of Ethereum (ETH/USD) signals limited downside potential — even if the price dips below the 200-bar SMA — due to oversold conditions on the RSI. This emphasizes the significance of the $2,420 support confluence, which is formed by trendlines from mid-May and early April.
A clear break below the $2,420 key support could expose ETH to a quick drop toward the $2,000 psychological level. Additional downside targets include the early-May swing high near $1,875, as well as the support levels highlighted on the daily chart.
On the upside, recovery attempts are likely to face initial resistance at the 200-bar SMA and the 38.2% Fibonacci Extension (FE) of the May–June move, located around $2,575 and $2,871, respectively. A sustained move beyond these levels could allow bulls to target the 50.0% and 61.8% FE levels at approximately $3,035 and $3,210, before encountering further resistance zones indicated on the daily chart.
Overall, Ethereum appears poised for a much-anticipated pullback, though the path lower is likely to be uneven and challenged by key technical levels.
