Ethereum struggled to gain momentum above the $2,000 resistance level against the US Dollar. ETH is trending lower, but declines are likely to be limited below the $1,900 area.
- Ethereum started a downside correction below the $2,000 resistance area.
- The price is still trading above $1,900 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $1,905 on the hourly chart of ETH/USD (data feed via Kraken).
- If it stays above $1,900 and the 100 hourly SMA, the pair may start a new rise.
Ethereum price reaches key support
Ethereum made an upward move above the $2,000 resistance area. However, the bulls are struggling above the $2,000 level. A high was formed near $2,015 and the price started a decline.
A move below the $1,950 and $1,940 levels. Ether price declined below the 23.6% Fib retracement level of the upward move from $1,704 low to $2,015 high. However, it is still trading above $1,900 and the 100 hourly simple moving average.
There is also a major bullish trend line forming with support near $1,905 on the hourly chart of ETH/USD. On the upside, an initial resistance is near the $1,960 level.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,980 level and there is a connecting bearish trend line forming on the same chart. The main resistance is still near the $2,000 area. There could be another upside break above the $2,000 resistance level. In this case, Ether price could move higher towards the $2,100 level. Any further gains could probably send it towards the $2,150 resistance area.
Downside Break in ETH?
If Ethereum fails to continue above the $1,980 resistance, it could extend its downside correction. An initial support on the downside is near the $1,920 area.
The next major support is near the $1,900 level and the 100 hourly simple moving average. Any further losses could require a test of the 50% Fib retracement level of the upward move from the $1,704 low to $,015 high. A break below the $1,850 level could send the price towards $1,800.
technical indicators
hourly macd , The MACD for ETH/USD is now losing momentum in the bullish zone.
hourly rsi , The RSI for ETH/USD is now just below the 50 level.
Key Support Level – $1,900
Key Resistance Level – $2,000