Ethereum extended its decline and broke the $2000 support against the US Dollar. ETH price is now recovering and may correct higher towards $2150.
- Ethereum extended its decline below the $2,050 and $2,000 support levels.
- The price is now trading well below $2,200 and the 100 hourly simple moving average.
- There was a break above the short-term descending channel with resistance near $1,950 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could recover above the $2000 level, but the bears may protect the $2200 area.
Ethereum price turns red
Ethereum remains in bearish territory below $2300, similar to Bitcoin. ETH traded even below the $2,200 and $2,100 support levels to move further into a bearish territory.
There was also a break below the $2000 support area and a lower close Simple moving average per 100 hours. The bottom formed near $1,847 and the price is now recovering higher. Ether price managed to rise above the $1,920 and $1,950 levels.
There was a clear break above the 23.6% Fib retracement level of the recent decline from the $2,283 high to $1,847 high. Moreover, there was a break above the short-term descending channel with resistance near $1,950 on the hourly chart of ETH/USD.
The pair is now showing some positive signs above $1.950. There is an immediate resistance on the upside near the $2000 level. The first major resistance on the upside is near the $2,065 level.
Source: ETHUSD on TradingView.com
It is close to the 50% Fib retracement level of the recent decline from the $2,283 high to $1,847 low. The main resistance is now forming near the $2,150 level and the 100 hourly simple moving average.
More losses in ETH?
If Ethereum fails to surpass the $2,065 and $2,150 resistance levels, it may continue to decline. There is initial support on the downside near the $1,920 level.
The major breakdown support is now forming near the $1,850 level. A break-down below the recent low and the $1,850 support level could lead to further losses. In the mentioned case, the price of Ether is likely to drop towards $1,720 in the near term.
MACD per hour – ETH/USD’s MACD is slowly recovering in bullish territory.
Hourly RSI – The RSI for ETH/USD is currently rising towards the 50 level.
Key Support Level – $1,850
Key Resistance Level – $2,065