Ethereum price corrected lower and tested the $1,935 support. ETH is likely forming a double bottom and could begin a decent rise.
- Ethereum reacted lower and tested the $1,935 support.
- The price is trading below $2,020 and the 100 hourly simple moving average.
- There was a break below a key contracting triangle with support near $2,025 on the ETH/USD hourly chart (data feed via Kraken).
- The pair likely forms a double bottom pattern and could outperform Bitcoin.
Revisiting Ethereum Price $1,935
After facing rejection near $2,090 area, the price of Ethereum reacted downward. ETH traded below the $2,050 and $2,020 support levels to enter a short-term bearish zone, like Bitcoin.
There was also a break below a key contracting triangle with support near $2,025 on the ETH/USD hourly chart. However, the bulls positioned themselves near the $1,935 support zone. It appears that Ether is likely forming a double bottom pattern, while Bitcoin forms double top near $38,000.
Ethereum is now trading above the 23.6% Fib retracement level of the downward move from the $2,092 high to $1,935 low. Immediate resistance is near the $2,000 zone.
The first major resistance is near $2,020 or the 100 hourly simple moving average. It is near the 61.8% Fib retracement level of the downward move from the $2,092 high to $1,935 low. A close above the $2,020 resistance could trigger another strong move higher.
Source: ETHUSD on TradingView.com
The next resistance is near $2,090, above which the price could aim for a move towards the $2,120 level. Any further gains could trigger a wave towards the $2,200 level.
More losses in ETH?
If Ethereum fails to clear the $2,020 resistance, it could begin a further decline. Initial support on the downside is near the $1,950 level. The next key support is $1,935.
The main support is $1,920. A downside break below the $1,920 support could begin a steady decline. In the presented case, Ether could fall towards the $1,850 support zone in the near term. Any further losses could result in a decline towards the $1,800 level.
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,935
Major Resistance Level – $2,020