Ethereum fell towards the $1700 level before starting a strong recovery against the US Dollar. ETH price is back above $2000, but it is likely to face hurdles near $2,060.
- Ethereum extended its decline below $1,800 before starting a steady recovery.
- The price is still trading below $2100 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $2,140 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to face strong resistance near the $2,060 and $2,100 levels in the near term.
Ethereum price recovers losses
Ethereum extended its decline below the $1,850 support, as Bitcoin. ETH traded even below the $1,800 and $1,750 support levels to move further into a bearish territory.
The price tested the $1700 level before starting a good recovery wave. Ether rose well above the $1,880 and $1,950 resistance levels. Bulls pushed the price above the 50% Fibonacci retracement level of last drop From the swing high of $2,280 to $1,703.
Moreover, there was a break above the short-term descending trend line with resistance near $1,940 on the hourly chart of ETH/USD. The pair is still trading below $2100 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The 61.8% Fib retracement level of the recent decline from the $2,280 swing high to $1,703 is also near the $2,060 region. The main resistance is now forming near the $2,150 level. There is also another major bearish trend line forming with resistance near $2,140 on the same chart. To move into positive territory, the price of Ether must cross the $2,060 and $2,150 levels in the near term.
New Drop in ETH?
If Ethereum fails to surpass the $2,060 and $2,150 resistance levels, it may start a new decline. There is initial support on the downside near the $1,940 level.
The first major support is now forming near the $1900 level and the broken trendline. The major breakdown support is now forming near the $1,840 level. A break-down below the $1,840 level could start a new slide towards the $1,700 area in the upcoming sessions.
MACD per hour – The MACD for ETH/USD is moving in bullish territory.
Hourly RSI – The RSI for ETH/USD is currently rising towards the 60 level.
Key Support Level – $1,940
Key Resistance Level – $2,060