Ethereum started a downside correction from the $2000 resistance against the US Dollar. ETH is consolidating and may drop further towards $1,810.
- Ethereum started a downside correction below the $1,950 level.
- The price is now trading below $1,950 and the 100 hourly simple moving average.
- There was a break below the connecting uptrend line with support near $1,925 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue declining if it remains below the $1,950 pivot level.
Ethereum price drop
Ethereum has made a few attempts to gain strength above $2000 resistance area. However, ETH failed to extend the gains and started correcting the downside below the $1,950 level.
There was a clear move below the $1,920 level and the 100 hourly simple moving average. Besides, there was a break below the connecting uptrend line with support near $1,925 on the hourly chart of ETH/USD. The price of Ether even fell below the $1,900 level.
A bottom was formed near $1,862 and the price is now consolidating losses. They are now trading for less than $1,950 and Simple moving average per 100 hours.
There is an immediate resistance on the upside near the $1900 level. It is close to the 23.6% Fib retracement level of the recent decline from the $2,030 swing high to $1,862 low. The first major resistance is near the $1945 and $1950 levels.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the $1,030 low to $1,862 low is also near the $1,950 level to act as a major resistance. A clear move above the $1,950 level could start a steady increase to $2,000. If there are more turns, the price may rise towards the $2,080 resistance area in the near term.
More losses in ETH?
If Ethereum fails to rise above the $1.950 resistance, it may continue to decline. There is initial support on the downside near the $1,862 region.
The next major support is near $1,850, and below it is the risk of a move towards the $1,810 level. If the bears continue to act, the price could drop towards the $1,720 level.
MACD per hour – ETH/USD’s MACD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Key Support Level – $1,860
The main resistance level – 1950 dollars