Ethereum price recovered losses and traded above $1,860 against the US dollar. ETH needs to clear USD 1,920 to start a strong rise in the near term.
- Ethereum is showing positive signs above the USD 1,860 level.
- The price is trading above $1,850 and the 100-hour Simple Moving Average.
- There was a break above a key bearish trendline with resistance near $1,865 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could still struggle to break the $1,920 resistance zone.
Ethereum Price Cuts Losses
The price of Ethereum found support near the $1,775 zone after a major drop. ETH formed a base and started another rise above the $1,800 resistance zone, similar to Bitcoin.
There was clear movement above the $1,840 and $1,850 resistance levels. In addition, there was a break above a key bearish trendline with resistance near USD 1,865 on the ETH/USD hourly chart. A high is formed near $1,898 and the price is now consolidating gains.
Ether is now trading above USD 1,850 and the 100-hour Simple Moving Average. It is also above the 23.6% Fib retracement level from the recent rise from the $1,777 swing low to the $1,898 high.
Source: ETHUSD at TradingView.com
Immediate resistance is near the $1,900 zone. The next major resistance is near the $1,920 level (a multi-touch zone). A good move above the $1,900 and $1,920 resistance levels could send Ether to $1,950. The next resistance is near USD 2,000, above which Ethereum could rise towards USD 2,040. More gains above the $2,040 resistance zone could push the price towards the $2,120 resistance.
New Decline in ETH?
If Ethereum fails to clear the $1,900 resistance, it could start a fresh decline. Initial support on the downside is near the $1,860 level and the 100-hour Simple Moving Average.
The next key support is near the $1,840 zone or the 50% Fib retracement level from the recent rise from the $1,777 swing low to the $1,898 high. If there is a break below the $1,840 support, the price could drop towards the $1,800 support. More losses may perhaps send the price towards the $1,775 or even $1,740 level in the coming sessions.
Technical indicators
MACD per hour – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is above the 50 level.
Major Support Level – $1,840
Major resistance level – $1,920