Ethereum price corrects gains from the $1,880 zone against the US dollar. ETH could rise to $1,820 before the bulls attempt another increase.
- Ethereum is falling from the $1,875 and $1,880 resistance levels.
- The price is trading below $1,850 and the 100-hour Simple Moving Average.
- A bullish flag pattern is forming with resistance near $1,855 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could drop towards the $1,820 support where the bulls could take a stand.
Ethereum price drops again
Ethereum price struggled to break through the $1,880 resistance zone and began a downside correction. ETH slowly moved lower below the $1,850 pivot point, similar to Bitcoin.
There was a drop below the 23.6% Fib retracement level of the main raise from the $1,800 swing low to the $1,876 high. The bears even pushed the price below the 100-hour Simple Moving Average. In addition, a bullish flag pattern is forming with resistance near $1,855 on the ETH/USD hourly chart.
Ether is now trading below $1,850 and the 100-hour Simple Moving Average. On the upside, immediate resistance is near the $1,855 level and the channel zone.
Source: ETHUSD at TradingView.com
The first major resistance is near the $1,872 level. The next key resistance is near the $1,880 level. A close above the USD 1,880 level could increase the chances of a steady rise towards USD 1,920. More gains could send the price towards the $2,000 hurdle, above which the price could rise to the $2,040 level or even $2,120.
Interruption in ETH?
If Ethereum fails to clear the $1,855 resistance, it could drop further. Initial support on the downside is near the $1,840 level or the 50% Fib retracement level of the key rise from the $1,800 swing low to the $1,876 high.
The first major support is near the $1,830 zone or the channel’s lower trendline. If the bulls fail to protect the $1,820 support, there could be a sharp decline. The next major support is near the $1,800 support level. Any more losses could send the price towards the $1,720 level in the near term.
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 now below the 50 level.
Major Support Level – $1,820
Major resistance level – $1,880