Ethereum price started a recovery wave above the $2,020 zone. ETH is now struggling to clear $2,080 and remains at risk of another near-term decline.
- Ethereum started a recovery wave above the $2,020 zone.
- The price is trading above USD 2,020 and the 100-hourly Simple Moving Average.
- A descending channel is forming with support at $2,000 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new decline if it stays below the $2,080 zone.
Ethereum price is facing major resistance
Ethereum price extended its recovery wave after reaching the $1,965 zone, just like Bitcoin. The ETH price managed to break the $2,000 resistance zone.
The bulls pushed the price above the 50% Fib retracement level of the downward move from the $2,200 swing high to the $1,912 low. The price even spiked above $2,050 but faced sellers near $2,090. The bears protected more gains and pushed the price below $2,050.
The Ethereum price is now trading above $2,000 and the 100-hourly Simple Moving Average. A descending channel is also forming with support at $2,000 on the hourly chart of ETH/USD.
If the bulls continue to act above $2,000, the price may try to rise again. Immediate resistance is seen around the $2,055 level. The first major resistance is near the $2,080 level or the 61.8% Fib retracement level of the downward move from the $2,200 swing high to the $1,912 low.
The next major resistance is around the $2,135 level. A clear move above the USD 2,135 resistance could send the price towards the USD 2,150 resistance. An upside break above the $2,150 region could lead to more gains in the coming days. In the mentioned case, Ether could rise towards the USD 2,200 or even USD 2,220 resistance zone in the short term.
Disadvantage of continuation in ETH?
If Ethereum fails to clear the USD 2,050 resistance, it could trigger another decline. The initial downside support is near the $2,000 level. The first major support is near the $1,980 zone.
A clear move below the USD 1,980 support could push the price towards the USD 1,910 support. Any further losses could send the price towards $1,880. The main support could be at USD 1,840.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $1,980
Major resistance level – $2,080