Ethereum price started a major decline below $2,000 against the US Dollar. ETH might extend its decline and revisit the $1,860 support.
- Ethereum is gaining bearish momentum below the $2,000 support.
- The price is trading below $2,000 and the 100-hourly Simple Moving Average.
- There is a connecting bearish trend line forming with resistance near $1,955 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could decline further if it breaks the $1,930 support zone.
Ethereum Price Takes Hit
Ethereum’s price struggled to climb further above the $2,125 resistance zone. ETH started a fresh decline below the $2,050 and $2,000 support levels, similar to Bitcoin.
Ether gained bearish momentum below the $2,000 support. It tested the $1,930 support. A low is formed near $1,933 and the price is now consolidating losses. It is now trading below $2,000 and the 100-hourly Simple Moving Average.
Immediate resistance is near the $1,960 zone. There is also a connecting bearish trend line forming with resistance near $1,955 on the hourly chart of ETH/USD. The 23.6% Fib retracement level of the downward move from the $2,125 swing high to the $1,933 low is also just above the trend line.
An upside break above the trend line resistance might send Ethereum toward $2,000. The next major resistance is near the $2,025 zone or the 50% Fib retracement level of the downward move from the $2,125 swing high to the $1,933 low. A close above the $2,025 resistance zone could start a fresh increase.
Source: ETHUSD on TradingView.com
In the stated case, the price could rise toward the $2,125 resistance. Any more gains could send Ether toward the $2,200 resistance in the near term.
More Losses in ETH?
If Ethereum fails to clear the $1,960 resistance, it could continue to move down. Initial support on the downside is near the $1,930 level. A downside break below the $1,930 support could spark bearish moves.
The next major support is near the $1,900 zone, below which ether price might decline toward $1,860. In the stated case, the price could revisit $1,820. Any more losses may perhaps send the price toward $1,780 in the coming days.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is well below the 50 level.
Major Support Level – $1,930
Major Resistance Level – $1,960