Ethereum price corrected lower and tested the USD 1,935 support. ETH is likely to form a double bottom and could cause a significant rise.
- Ethereum reacted on the negative side and tested the support at $1,935.
- 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 hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to form a double bottom pattern and could outperform Bitcoin.
Ethereum price revisits $1,935
After a rejection near the $2,090 zone, Ethereum price responded to the downside. ETH traded below the USD 2,050 and USD 2,020 support levels, entering a short-term bearish zone like Bitcoin.
There was also a break below a key contracting triangle with support near $2,025 on the hourly chart of ETH/USD. However, the bulls took a stand near the $1,935 support zone. It looks like Ether is likely to form a double bottom pattern, while Bitcoin is forming a double top near $38,000.
Ethereum is now trading above the 23.6% Fib retracement level of the downward move from the $2,092 swing high to the $1,935 low. The immediate resistance is near the $2,000 zone.
The first major resistance is near $2,020, or the 100-hour Simple Moving Average. It is close to the 61.8% Fib retracement level of the downward move from the $2,092 swing high to the $1,935 low. A close above the $2,020 resistance could spark another strong upside.
Source: ETHUSD on TradingView.com
The next resistance is near USD 2,090, above which the price could aim for a move towards the USD 2,120 level. Any further gains could trigger a wave towards the $2,200 level.
Lose more in ETH?
If Ethereum fails to clear the USD 2,020 resistance, it could trigger another decline. The initial downside support is near the $1,950 level. The next major support is $1,935.
The main support is $1,920. A downside break below the $1,920 support could trigger a steady decline. In the mentioned case, Ether could fall towards the $1,850 support zone in the short term. Further losses could require a decline towards the USD 1,800 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $1,935
Major resistance level – $2,020