For more than a year, Ethereum has been steady; a monthly close below this level might be disastrous.

Ethereum has had trouble gaining traction and has spent more than a year trapped below crucial barrier. Since the start of this year, the second-largest cryptocurrency by market value has failed to break through significant technical levels despite numerous tries.

More weakening has been seen in Ethereum’s price behavior during the last two weeks. The cryptocurrency just failed to break above a resistance indication, putting it at risk of further catastrophic price losses, according to an intriguing study by analyst Tony “The Bull” Severino

Ethereum Is Unable to Break Through Long-Term Opposition

In a technical analysis posted on social networking site X, Tony “The Bull” Severino emphasized Ethereum’s ongoing inability to break through significant resistance levels. He noted that despite more than a year of efforts, Ethereum has failed to tag the quarterly (three-month) Parabolic SAR. Ethereum is engaged in a protracted battle against resistance on a broader downturn, according to this indicator, which is frequently employed to ascertain the direction of an asset’s trend.

According to the expert, this conveys a message that opposition will not be overcome.

In addition to the inability to overcome resistance, another analysis by Tony Severino pointed out that Ethereum has been consistently rejected by the quarterly (3M) SuperTrend dynamic resistance, which strengthens the argument that buyers have not been able to regain control.

It may be disastrous if the monthly close falls below $2,100.

The main theme over the last six months has been Ethereum’s incapacity to maintain important price levels. It’s interesting to note that within the last two weeks, this incapacity was further demonstrated. The cryptocurrency has been steadily declining and has lost several support zones after failing to stay above $2,800.

Ethereum is currently trading below $2,200 and is very nearly breaching below the critical $2,100 mark. In addition to signaling the loss of yet another psychological support, a decline below this level is especially worrisome because technical signs indicate that a monthly closure below $2,100 might have dire repercussions.

The quarterly Bollinger Bands indicator, which has monitored Ethereum’s price movement since February 2022, is among the most important warning indicators. This indicator shows that Ethereum has stayed within a specific range, with the bottom Bollinger Band at $2,098 and the upper band at $4,190. A monthly close below $2,100 would essentially translate into a break below the lower Bollinger Band and the removal of a long-standing support level, which is concerning.

As of this writing, Ethereum is trading at $2,178, up 2.2% over the last day from its opening price of $2,120. The sentiment surrounding Ethereum is currently at its lowest point of the year. To see if Ethereum can recover lost ground and avoid a monthly close below $2,100, the coming weeks will be critical.

FAQ

Why has Ethereum struggled to break through key resistance levels?

Ethereum has been unable to surpass critical resistance levels for over a year due to strong selling pressure and market uncertainty. Analysts note that the cryptocurrency has been consistently rejected by technical indicators such as the quarterly Parabolic SAR and SuperTrend resistance.

What happens if Ethereum closes below $2,100?

A monthly close below $2,100 could be disastrous for Ethereum. This would indicate a breakdown below the lower Bollinger Band, removing a long-standing support level and potentially leading to further price declines.

What technical indicators suggest Ethereum is in trouble?

Several technical indicators, including the Parabolic SAR, SuperTrend resistance, and Bollinger Bands, suggest Ethereum is struggling. These indicators highlight Ethereum’s prolonged downward trend and the risk of further losses if it fails to hold key support levels.

What is the significance of the $2,800 resistance level?

Ethereum has attempted multiple times to stay above $2,800 but has failed. This level represents a strong psychological and technical resistance zone, and breaking above it could signal a bullish reversal.

Can Ethereum recover from this downtrend?

Ethereum’s recovery depends on whether buyers regain control and push the price above key resistance levels. If Ethereum manages to stay above $2,100 and regain momentum, it may attempt another breakout toward higher levels in the coming months.