Ethereum price started a downside correction below $1,950 against the US Dollar. ETH is testing the $1,900 support and showing some bearish signs.
- Ethereum corrects gains below the $1,950 zone.
- The price is trading below $1,940 and the 100-hour Simple Moving Average.
- A major bearish trendline is forming with resistance near $1,925 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could start a fresh increase unless it closes below USD 1,900 in the near term.
Ethereum price corrects gains
Ethereum price failed to clear the $1,975 resistance and began a downside correction. Trading below the $1,950 level, ETH extended its decline, similar to Bitcoin.
There was a move below the $1,920 support. Eventually, the price peaked below $1,900. A low is forming near USD 1,894 and the price is now consolidating losses. It is now trading near the 23.6% Fib retracement level from its recent drop from the $1,974 swing high to the $1,894 low.
Ether is trading below $1,940 and the 100-hour Simple Moving Average. A major bearish trendline is also forming with resistance near $1,925 on the ETH/USD hourly chart.
Immediate resistance is near the $1,925 level, the 100-hour Simple Moving Average. The next major resistance is near the $1,945 level. It is close to the 61.8% Fib retracement level of the recent drop from the $1,974 swing high to the $1,894 low.
Source: ETHUSD at TradingView.com
A clear move above the $1,945 resistance could push the price towards $1,975. The main resistance is still near the $2,000 level, above which the price could start a decent increase. The next major resistance is near the $2,120 level. Any further gains could send Ether towards the $2,200 resistance.
Lose more in ETH?
If Ethereum fails to clear the $1,925 or $1,945 resistance, it could fall further. The first support on the downside is near the $1,900 level.
The first major support is near the $1,870 level. The next major support is near the $1,820 level. If there is a move below the $1,820 support, the price could fall towards the $1,770 support level.
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 – $1,945