Ethereum extended its decline and tested the $1,920 support level against the US Dollar. ETH is on the rise and may reconsider the key resistance area of $2,085.
- Ethereum remained stable above the key support area of $1,920.
- The price is now trading above $2000 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $1,980 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could go higher, but the $2,085 area is a major obstacle.
Ethereum price recovers above $2,000
Ethereum Extended retreat After it broke the $1,950 support and the 100 hourly simple moving average. However, the bulls took a strong position near the support at $1,920.
The bottom formed near $1,911 and the price started a recovery wave. There was a clear move above the $150 and $1960 resistance levels. Ether price rose above the 50% Fib retracement level of the downside move from the $2,083 swing high to $1,911 low.
Besides, there was a break above the major downtrend line with resistance near $1,980 on the hourly chart of ETH/USD. Ether price is now trading above $2000 and 100-hour simple moving average.
The price is now facing resistance near the 2020 level. It is near the 61.8% Fib retracement level of the downside move from the $2,083 swing high to $1,911 low. The next major resistance is near the $2,040 level. The main resistance is now forming near the $2,085 level. A close above $2,085 may open the door for a steady increase.
Source: ETHUSD on TradingView.com
In the mentioned case, the price of Ether may rise towards the $2200 resistance. Any further gains could lead it towards the key $2,250 resistance area.
A new drop in ETH?
If Ethereum fails to recover above the $2,400 resistance, it may start a new decline. There is initial support on the downside near the $1,995 area and the hourly 100 simple moving average.
The next major support is near the 1970 level. A break-down below the $1,970 level may call for another test of the key support at $1,920. Any further losses could pave the way for a sharp drop to $1800.
MACD per hour – ETH/USD’s MACD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Key Support Level – $1,970
Key Resistance Level – $2,085