Ethereum price failed to test $2,000 and corrected lower against the US Dollar. ETH is testing the $1,930 support and might start a fresh increase.
- Ethereum is correcting gains from the $1,975 zone.
- The price is trading above $1,930 and the 100-hourly Simple Moving Average.
- There is a short-term declining channel forming with resistance near $1,950 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start another increase if it remains stable above $1,930 in the near term.
Ethereum Price Holds Support
The price of Ethereum attempted to break above the $1,975 zone but faced resistance and struggled to gain momentum for a move toward $2,000, similar to Bitcoin. As a result, there was a drop below the $1,950 support level. However, the bulls were active near the $1,930 support zone, which also coincided with the 50% Fibonacci retracement level of the upward move from the $1,890 swing low to the $1,975 high.
Currently, Ether price is trading above $1,930 and the 100-hourly Simple Moving Average, indicating some stability in the short term. The immediate resistance is around the $1,950 level, and there is a short-term declining channel forming with resistance near $1,950 on the hourly chart of ETH/USD. The next significant resistance level is nearly $1,975. If the price manages to clear this resistance, it could pave the way for a push toward the $2,000 level.
The next resistance sits near $2,050, above which the price could rise toward the $2,120 level. Any more gains could send Ether toward the $2,200 resistance.
More Losses in ETH?
If Ethereum fails to clear the resistance at $1,950 or $1,975, it may experience further downward movement. The initial support on the downside is around the $1,930 level, which also coincides with the 100-hourly Simple Moving Average.
If the price continues to decline, the first major support is near $1,910, followed by another significant support level near $1,900. A break below $1,900 could potentially lead to a drop toward the $1,870 support level. If selling pressure persists, the price might even reach the $1,820 support level in the near term.
Looking at the technical indicators, the hourly MACD is indicating a loss of momentum in the bullish zone, which suggests a possible weakening of buying pressure. The hourly RSI (Relative Strength Index) has fallen below the 50 level, indicating a shift toward bearish sentiment.
In summary, Ethereum faces resistance at $1,950 and $1,975, and if it fails to break above these levels, it could experience a further downward movement toward support levels at $1,930, $1,910, and $1,900. Traders should closely monitor these key levels and indicators for potential price movements.