Ethereum failed to recover above the $ 2,300 resistance zone against the US Dollar. ETH price is moving lower and it is likely to accelerate lower below the $ 2,000 support.
- Ethereum failed to move above the $ 2,300 zone and started a fresh decline.
- The price is now trading well below $ 2,200 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $ 2,180 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to break the $ 2,000 support and continue lower in the near term.
Ethereum Price Is Declining
Ethereum started a short-term recovery wave above the $ 2,100 level. ETH broke the $ 2,200 resistance level, but the bulls struggled to gain strength, similar to bitcoin.
It faced a strong selling interest near the $ 2,280 and $ 2,300 levels. A high was formed near $ 2,281 before the price started a fresh decline. It broke the 50% Fib retracement level of the upward move from the $ 1,953 swing low to $ 2,281 high.
It is now trading well below $ 2,200 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $ 2,180 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
An immediate support is near the $ 2,040 level. It is near the 76.4% Fib retracement level of the upward move from the $ 1,953 swing low to $ 2,281 high. A downside break below the $ 2,040 level may possibly open the doors for more losses. The next major support is near the $ 2,000 level, below which the price could dive towards the $ 1,920 and $ 1,900 levels.
Upsides Limited in ETH?
If Ethereum stays above the $ 2,040 and $ 2,000 support levels, it could start a fresh increase. An initial resistance on the upside is near the $ 2,150 level.
The first major resistance is now forming near the trend line and $ 2,160. A clear break above the trend line resistance could lead the price towards the main $ 2,280 resistance and the 100 hourly simple moving average. Ether must settle above $ 2,280 and $ 2,300 to move back into a positive zone in the coming days.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $ 2,040
Major Resistance Level – $ 2,160
