Ethereum tried to recover well, but failed to break above $2000 against the US dollar. ETH price is paring gains and may continue to fall towards $1,850.
- Ethereum failed to break above the $2,050 and $2,060 resistance levels.
- The price is trading well below $2000 and the 100 hourly simple moving average.
- There is a crucial bearish trend line forming with resistance near $2,060 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue falling unless there is a strong close above $2000 in the near term.
Ethereum price gains
Ethereum found strong support near the $1,700 region, as Bitcoin. ETH started a good rally above the $1800 and $1900 levels.
There was a break above the 50% Fib retracement level of the major decline from the $2,285 swing high to $1,700. However, the cleared ether price failed to break above the $2,050 and $2,060 resistance levels.
They are now trading for well under $2000 and Simple moving average per 100 hours. The price also failed near the 61.8% Fib retracement level of the major decline from the $2,285 swing high to $1,700. Besides, there is a crucial bearish trend line forming with resistance near $2,060 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
There is an immediate resistance on the upside near the $1,950 level. The first major resistance is near the $2000 area and the 100 hour SMA. The main barrier is near the trend line and $2,050. To move into positive territory, the price of ether must cross $2000 and $2,050 in the near term.
More losses in ETH?
If Ethereum fails to break above the $2000 and $2,050 resistance levels, it may continue to decline. There is initial support on the downside near the $1,850 level.
The first major support is now forming near the $1,820 level. The main support is now forming near the $1800 level. A break-down below the $1800 area could put a lot of pressure on the bulls. In the mentioned case, the price is likely to revisit the $1700 area in the near term.
MACD per hour – ETH/USD’s MACD is moving into bearish territory.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Key Support Level – $1,850
Key Resistance Level – $2000