Ethereum price started a downward correction and traded below $2,000. ETH must remain above $1,920 to initiate further near-term upside.
- Ethereum corrects gains and tests the $1,920 support zone.
- The price is trading below $2,000 and the 100 hourly simple moving average.
- A key downtrend line is forming with resistance near $2,000 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could begin a further rise if it breaks the $2,000 resistance zone in the near term.
Ethereum Price Holds Key Support
After struggling to breach the $2,120 resistance, Ethereum price began a downward correction as Bitcoin. ETH traded below the $2,050 and $2,000 support levels.
However, the bulls were active above the $1,920 Support Zone. A low was formed near $1,933 and the price is now consolidating its losses. It is trading near the 23.6% Fib retracement level of the recent decline from the $2,118 high to $1,933 low.
Ethereum is now trading below $2,000 and the 100 hourly simple moving average. Immediate resistance is near the $2,000 zone. There is also a key downtrend line forming with resistance near $2,000 on the ETH/USD hourly chart.
The next major resistance lies at $2,025 or the 100 hourly simple moving average or the 50% Fibonacci retracement level of the recent decline from the $2,118 high to $1,933 low. A close above the trendline and $2,025 could start a decent increase.
Source: ETHUSD on TradingView.com
The next key resistance is near $2,075, above which the price could target a move towards the $2,120 barrier. Any further gains could trigger a wave towards the $2,250 level.
More losses in ETH?
If Ethereum fails to clear the $2,000 resistance and the trendline, it could begin a further decline. Initial support on the downside is near the $1,950 level.
The next key support is $1,920. A downside break below the $1,920 support could initiate a sharp 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 bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,920
Major Resistance Level – $2,025