TA: Ethereum (ETH) Recovery Faces Hurdles, Why Bears Remain In Control
Ethereum started an upside correction from the $1,865 zone against the US Dollar. ETH price climbed above $2,000, but it is facing a strong resistance near $2,050.
- Ethereum tested the $1,865 zone before it started a decent recovery wave.
- The price is still trading well below the $2,050 resistance and the 100 hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance near $1,945 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct lower, but the bulls must protect $1,950 to avoid more downsides in the near term.
Ethereum Price Struggles Above $2K
After a close below $2,000, ethereum extended its decline, similar to bitcoin. ETH price even broke the $1,920 support level and it settled well below the 100 hourly simple moving average.
A low was formed near $1,865 and the price recently started an upside correction. There was a break above the $1,920 and $1,950 resistance levels. There was also a break above a connecting bearish trend line with resistance near $1,945 on the hourly chart of ETH/USD.
Ether even climbed above the $2,000 resistance zone. However, the price is struggling near $2,050 and the 100 hourly simple moving average. A high is formed near $2,039 and the price is now moving lower.
Source: ETHUSD on TradingView.com
It broke the 23.6% Fib retracement level of the upward move from the $1,865 swing low to $2,040 high. On the upside, the price is clearly facing a strong resistance near the $2,050 zone and the 100 hourly SMA. If ether settles above $2,050, there could be a strong increase. The next major resistance is near the $2,080 level.
Fresh Decline in ETH?
If Ethereum fails to recover above $2,040 and $2,050, it could continue to move down. An initial support on the downside is near the $1,980 level.
The first major support is near the $1,950 level. The 50% Fib retracement level of the upward move from the $1,865 swing low to $2,040 high is also near the $1,950 level. If ether fails to stay above the $1,950 support, it could decline towards the $1,865 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is moving lower towards the 50 level.
Major Support Level – $1,950
Major Resistance Level – $2,050
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
