Ethereum price started an upside correction above $1,850 against the US Dollar. ETH could start another drop if it continues to struggle near $1,900.
- Ethereum is attempting an upside correction above USD 1,850.
- The price is trading below $1,880 and the 100-hour Simple Moving Average.
- A major bearish trendline is forming with resistance near $1,870 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could decline further if it stays below USD 1,880 and USD 1,900.
Ethereum price encounters resistance
Ethereum price managed to stay above the $1,800 support zone. ETH formed a base and recently started an upside correction above USD 1,850, similar to Bitcoin at USD 28,000.
The price was able to climb above the 23.6% Fib retracement level of the key decline from the $1,940 swing high to the $1,805 low. However, the price struggled to cross the $1,880 resistance zone and failed to stay above the 100-hour Simple Moving Average.
Ether is now trading below $1,880 and the 100-hour Simple Moving Average. It appears to be facing hurdles near the 50% Fib retracement level of the main drop from the $1,940 swing high to the $1,805 low.
A major bearish trendline is also forming with resistance near $1,870 on the ETH/USD hourly chart. The next major resistance seems to be forming near USD 1,900. A close above the $1,900 level could trigger another rise. In the said case, the price could rise towards the $1,950 resistance.
Source: ETHUSD at TradingView.com
Any further gains could send Ether towards the $2,000 resistance. In the said case, Ether might even try to move into the USD 2,000 zone, above which the price could gain bullish momentum and even test USD 2,120.
New Decline in ETH?
If Ethereum fails to clear the $1,880 resistance, it could spark another bearish wave. The first support on the downside is near the $1,840 level.
The next major support is near the $1,800 zone or the latest swing low, below which the ether price could fall towards the $1,765 support zone. More losses may push the price to the $1,720 level in the near term.
Technical indicators
MACD per hour – The MACD for ETH/USD is now losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is above the 50 level.
Major Support Level – $1,840
Major resistance level – $1,880