The Ethereum price experienced a significant drop in tandem with Bitcoin, falling below the $2,000 mark. However, it has managed to maintain a crucial support level at $1,920 and might make an attempt at a new upward movement.
Despite struggling to surpass the $2,070 resistance, Ethereum underwent a correction, currently trading below $2,000 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD provided by Kraken, a notable bearish trend line is taking shape, presenting resistance around $1,990.
For a potential resurgence, the ETH/USD pair needs to successfully overcome the $2,000 obstacle.
Ethereum Price Eyes Fresh Increase
The Ethereum price encountered difficulty surpassing the $2,070 resistance and responded with a downward movement. Following reports of Binance’s settlement, similar to Bitcoin, ETH dropped below the $2,000 support region.
The bears extended the decline beneath the $1,950 support and the 100-hourly Simple Moving Average. Nevertheless, Ethereum held above the critical $1,920 support, establishing a low around $1,930 and is now making an effort for a renewed increase.
While Ethereum breached the 23.6% Fib retracement level of the recent decline from the $2,068 swing high to the $1,930 level, it remains below $2,000 and the 100-hourly Simple Moving Average.
On the positive side, resistance is evident around the $1,990 zone. Additionally, a significant bearish trend line is shaping up, presenting resistance near $1,990 on the hourly ETH/USD chart. The primary resistance lies near the $2,000 mark or the 50% Fib retracement level of the recent decline from the $2,068 swing high to the $1,930 level.
A decisive breakthrough beyond the $2,000 mark has the potential to trigger bullish momentum. The subsequent resistance is in close proximity to $2,070, and surpassing this level could pave the way for an upward move towards the $2,120 mark. Further gains may initiate a surge towards the $2,200 level.
More Losses in ETH?
Should Ethereum be unable to overcome the $2,000 resistance, it may initiate a renewed decline. Initial support on the downside is anticipated near the $1,950 level.
The subsequent crucial support levels are situated at $1,930 or $1,920, with the primary support still holding firm near $1,905. A downside breach beneath the $1,905 support level could potentially lead to further losses. In such a scenario, Ethereum might decline towards the $1,820 support zone in the short term.
Analyzing the technical indicators:
- Hourly MACD: The MACD for ETH/USD is showing a diminishing momentum within the bearish zone.
- Hourly RSI: The RSI for ETH/USD is currently in proximity to the 50 level.
Key Levels to Watch:
- Major Support Level: $1,930
- Major Resistance Level: $2,000