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Ethereum Price Plunge Deepens – Brace for Major Correction Ahead?

Ethereum Price Plunge Deepens – Brace for Major Correction Ahead?

Author:
Newsbtc
Published:
2025-08-20 03:18:18
20
3

Ethereum's bleeding continues as the smart contract giant sheds another chunk of its value—traders are scrambling to gauge just how deep this rabbit hole goes.

Technical Breakdown: Charts Scream Caution

Support levels are crumbling faster than a decentralized promise. The 50-day moving average? Shattered. Key psychological barriers? Evaporated like gas fees in a bull run.

Market Sentiment: From Greed to Pure Fear

Whales are dumping bags while retail investors cling to hopium—classic crypto theater. Trading volumes spike as panic sets in, because nothing fuels financial decisions quite like pure, unadulterated FOMO.

Macro Factors: Traditional Finance Finally Notices

Rate hikes and regulatory murmurs are hitting risk assets across the board. But let's be real—when the Fed sneezes, crypto catches pneumonia. Wall Street's suddenly remembering this isn't just 'internet money' anymore.

Bottom Line: Correction or Carnage?

This isn't a dip—it's a full-blown reality check. Either Ethereum finds footing fast, or we're staring down a proper crypto winter. Because nothing tests conviction like seeing your portfolio drop faster than a shitcoin rug pull.

Ethereum Price Dips Further

Ethereum price failed to recover and started a fresh decline below the $4,550 zone, like Bitcoin. ETH price gained bearish momentum and traded below the $4,350 support zone.

The bears were able to push the price below the $4,250 support zone. Finally, the price tested the $4,065 zone. A low was formed at $4,065 and the price is now consolidating losses below the 23.6% Fib retracement level of the recent decline from the $4,580 swing high to the $4,065 low.

Ethereum price is now trading below $4,250 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance NEAR the $4,185 level. The next key resistance is near the $4,320 level. It is close to the 50% Fib retracement level of the recent decline from the $4,580 swing high to the $4,065 low.

The first major resistance is near the $4,350 level. There is also a bearish trend line forming with resistance at $4,350 on the hourly chart of ETH/USD. A clear MOVE above the $4,350 resistance might send the price toward the $4,385 resistance.

Ethereum Price

An upside break above the $4,385 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,500 resistance zone or even $4,550 in the near term.

More Downside In ETH?

If ethereum fails to clear the $4,320 resistance, it could continue to move down. Initial support on the downside is near the $4,065 level. The first major support sits near the $4,020 zone.

A clear move below the $4,020 support might push the price toward the $4,000 support. Any more losses might send the price toward the $3,850 support level in the near term. The next key support sits at $3,620.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $4,020

Major Resistance Level – $4,350

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