Ethereum extended its decline and it even broke the $2,000 support against the US Dollar. ETH price is now recovering and it might correct higher towards $2,150.
- Ethereum extended its decline below the $2,050 and $2,000 support levels.
- The price is now trading well below $2,200 and the 100 hourly simple moving average.
- There was a break above a short-term declining channel with resistance near $1,950 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could recover above the $2,000 level, but the bears might protect the $2,200 zone.
Ethereum Price Turns Red
Ethereum remained in a bearish zone below the $2,300 level, similar to bitcoin. ETH even traded below the $2,200 and $2,100 support levels to move further into a bearish zone.
There was also a break below the $2,000 support zone and a close below the 100 hourly simple moving average. A low was formed near $1,847 and the price is now recovering higher. Ether price was able to climb above the $1,920 and $1,950 levels.
There was a clear break above the 23.6% Fib retracement level of the of the recent decline from the $2,283 high to $1,847 low. Moreover, there was a break above a short-term declining channel with resistance near $1,950 on the hourly chart of ETH/USD.
The pair is now showing a few positive signs above $1,950. An immediate resistance on the upside is near the $2,000 level. The first major resistance on the upside is near the $2,065 level.
Source: ETHUSD on TradingView.com
It is close to the 50% Fib retracement level of the of the recent decline from the $2,283 high to $1,847 low. The main resistance is now forming near the $2,150 level and the 100 hourly simple moving average.
More Losses in ETH?
If Ethereum fails to clear the $2,065 and $2,150 resistance levels, it could continue to move down. An initial support on the downside is near the $1,920 level.
The main breakdown support is now forming near the $1,850 level. A downside break below the recent low and the $1,850 support level may possibly call for more losses. In the stated case, ether price is likely to decline towards $1,720 in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly recovering in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently rising towards the 50 level.
Major Support Level – $1,850
Major Resistance Level – $2,065