Ethereum Price Topside Bias Vulnerable If It Continues To Struggle Below $1,900

Posted on

Ethereum price started an upside correction above $1,850 against the US Dollar. ETH could start another decline if it continues to struggle near $1,900.

  • Ethereum is attempting an upside correction above $1,850.
  • The price is trading below $1,880 and the 100-hourly Simple Moving Average.
  • There is a major bearish trend line forming with resistance near $1,870 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move down if it stays below $1,880 and $1,900.

Ethereum Price Faces Resistance

Ethereum’s price managed to stay above the $1,800 support zone. ETH formed a base and recently started an upside correction above $1,850, similar to Bitcoin at $28,000.

The price was able to climb above the 23.6% Fib retracement level of the key drop from the $1,940 swing high to the $1,805 low. However, the price struggled to surpass the $1,880 resistance zone and failed to stay above the 100-hourly Simple Moving Average.

Ether is now trading below $1,880 and the 100-hourly Simple Moving Average. It seems to be facing hurdles near the 50% Fib retracement level of the key drop from the $1,940 swing high to the $1,805 low.

There is also a major bearish trend line forming with resistance near $1,870 on the hourly chart of ETH/USD. The next major resistance seems to be forming near $1,900. A close above the $1,900 level might start a fresh increase. In the stated case, the price could rise toward the $1,950 resistance.

Source: ETHUSD on TradingView.com

Any more gains could send Ether toward the $2,000 resistance. In the stated case, Ether could even attempt a move toward the $2,000 zone, above which the price could gain bullish momentum and even test $2,120.

Fresh Decline in ETH?

If Ethereum fails to clear the $1,880 resistance, it could start another bearish wave. Initial support on the downside is near the $1,840 level.

The next major support is near the $1,800 zone or the last swing low, below which ether price might drop toward the $1,765 support zone. Any more losses may perhaps take the price toward the $1,720 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is above the 50 level.

Major Support Level – $1,840

Major Resistance Level – $1,880

Source: Read Full Article