Ethereum price failed to stay above $2,000 and corrected lower against the US Dollar. ETH could start a fresh rally if there is a move above USD 1,950.
- Ethereum started a downside correction and it tested the USD 1,900 level.
- The price is trading below $1,950 and the 100-hour Simple Moving Average.
- A major bearish trendline is forming with resistance near $1,930 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could start a fresh increase if it crosses the $1,930 and $1,950 resistance levels.
Ethereum price could restart rally
Ethereum price surged above the USD 1,970 resistance. ETH even climbed above $2,000 but failed to extend gains. A high was formed at $2,027 before a bearish reaction.
There was movement below the $1,950 support zone and the 100-hour Simple Moving Average. The price even tested the $1,900 level. A low is forming near $1,900 and the price is now consolidating losses. It is trading near the 23.6% Fib retracement level down from the $2,027 swing high to the $1,900 low.
Ether also trades below $1,950 and the 100-hour Simple Moving Average. In addition, a major bearish trendline is forming with resistance near $1,930 on the ETH/USD hourly chart.
On the upside, immediate resistance is near the $1,930 level. The first major resistance is near the $1,950 zone, above which the price could rise towards the $1,975 resistance zone. It is close to the downward move of the 61.8% Fib retracement level from the $2,027 swing high to the $1,900 low.
Source: ETHUSD at TradingView.com
The next major resistance is near the $2,000 level. Any further gains could send Ether towards the $2,050 resistance or even $2,120.
Lose more in ETH?
If Ethereum fails to clear the $1,930 resistance, it could be another drop. The first support on the downside is near the $1,920 level.
The first major support is near the USD 1,900 level, below which the price could gain bearish momentum. The next major support is near the $1,850 support level. More losses could send Ether towards the $1,825 support level in the near term.
Technical indicators
MACD per hour – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,900
Major resistance level – $1,950
