Analysis

TA: Ethereum Dips Below $2K, Here’s What Could Trigger A Fresh Increase

Ethereum extended its decline below the $ 2,000 support against the US Dollar. ETH price is now consolidating losses and it could start a fresh increase if it clears $ 2,010.

  • Ethereum extended its decline below the $ 2,050 and $ 2,000 support levels.
  • The price is now trading well below $ 2,050 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $ 2,065 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a decent increase if it clears the $ 2,010 resistance zone.

Ethereum Price Steadies Above $ 1,950

After another failure above $ 2,100, Ethereum started a downside correction. ETH traded below the $ 2,050 and $ 2,010 support levels. It even broke the $ 2,000 level and settled below the 100 hourly simple moving average, similar to bitcoin.

A low was formed near $ 1,937 before the price started a short-term upside correction. Ether climbed above the $ 1,960 and $ 1,975 levels. There was a break above the 23.6% Fib retracement level of the recent drop from the $ 2,132 high to $ 1,937 low.

It seems like the price is now forming a breakout pattern with resistance near $ 2,010. A clear break above the $ 2,010 resistance could lead the price towards the $ 2,035 level.

Ethereum Price

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the recent drop from the $ 2,132 high to $ 1,937 low is near $ 2,050 to act as a resistance. There is also a major bearish trend line forming with resistance near $ 2,065 on the hourly chart of ETH/USD.

To move into a bullish zone, ether price must break the $ 2,010 resistance and then gain strength for a move above the trend line resistance.

More Losses in ETH?

If Ethereum fails to clear the $ 2,010 resistance, it could correct further lower. The first major support is now forming near the $ 1,960 level and the triangle lower trend line.

The main support is now near the $ 1,940 level. A clear downside break below the triangle support and the $ 1,940 zone could lead the price towards the $ 1,880 support level in the coming sessions. Any more losses will most likely call for a test of $ 1,850.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now approaching the 50 level.

Major Support Level – $ 1,960

Major Resistance Level – $ 2,060

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