Ethereum struggled to gain above the $2,000 resistance against the US Dollar. ETH is correcting lower, but declines may be limited below the $1,900 region.
- Ethereum started a downside correction from the $2000 resistance area.
- The price is still trading above $1900 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).
- The pair could start a new high if it stays above $1900 and the hourly 100 SMA.
Ethereum price reaches major support
Try Ethereum The upside breakout above the $2000 resistance area. However, the bulls struggled above the $2000 level. A top formed near 2015 dollars and the price started a downward correction.
There was a move below the $1,950 and $1,940 levels. Ether price has dropped below the 23.6% Fib retracement level of the upward move from the $1,704 swing low to the 2015 high. However, it is still trading above $1900 and 100-hour 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, there is an initial resistance near the $1,960 level.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,980 level and a connecting descending trend line on the same chart. The main resistance is still near the $2000 area. A proper bullish break above the $2000 resistance could trigger a new rally. In the mentioned case, the price of ether could rise towards the $2100 level. Any further gains could lead it towards the $2150 resistance area.
Breaking the downside in ETH?
If Ethereum fails to continue rising above the $1,980 resistance, it may extend its bearish correction. There is initial support on the downside near the $1,920 region.
The next major support is near the $1900 level and the 100 hourly simple moving average. Any further losses may require a test of the 50% Fib retracement level of the upward move from the $1,704 swing low to $2,015 high. A break-down below the $1,850 level could push the price towards $1800.
MACD per hour – ETH/USD’s MACD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Main Support Level – $1900
Key Resistance Level – $2000