Ethereum Resumes Decline, Here’s How The Bears Could Take Control
Ethereum failed to recover above the $2,300 resistance zone against the US Dollar. ETH price is moving lower and it is likely to accelerate lower below the $2,000 support.
Ethereum failed to move above the $2,300 zone and started a fresh decline.
The price is now trading well below $2,200 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $2,180 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to break the $2,000 support and continue lower in the near term.
Ethereum Price Is Declining
Ethereum started a short-term recovery wave above the $2,100 level. ETH broke the $2,200 resistance level, but the bulls struggled to gain strength, similar to bitcoin.
It faced a strong selling interest near the $2,280 and $2,300 levels. A high was formed near $2,281 before the price started a fresh decline. It broke the 50% Fib retracement level of the upward move from the $1,953 swing low to $2,281 high.
It is now trading well below $2,200 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $2,180 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
An immediate support is near the $2,040 level. It is near the 76.4% Fib retracement level of the upward move from the $1,953 swing low to $2,281 high. A downside break below the $2,040 level may possibly open the doors for more losses. The next major support is near the $2,000 level, below which the price could dive towards the $1,920 and $1,900 levels.
Upsides Limited in ETH?
If Ethereum stays above the $2,040 and $2,000 support levels, it could start a fresh increase. An initial resistance on the upside is near the $2,150 level.
The first major resistance is now forming near the trend line and $2,160. A clear break above the trend line resistance could lead the price towards the main $2,280 resistance and the 100 hourly simple moving average. Ether must settle above $2,280 and $2,300 to move back into a positive zone in the coming days.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $2,040
Major Resistance Level – $2,160