Ethereum continued its decline and traded near the $ 1,700 zone against the US Dollar. ETH price is recovering, but faces strong resistance in the $ 2,200 zone. According to the technical analysis of NewsBTC’s Aayush Jindal:
- Ethereum pulled its decline below the $ 2,000 and $ 1,800 support levels.
- The price is well below the $ 2,500 level and the 100 hourly simple moving average.
- There is a major bearish trend line showing resistance near $ 2,200 on the hourly chart of ETH / USD (based on Kraken data).
- The pair needs to clear $ 2,200 and $ 2,400 to start a good recovery in the near term.
Ethereum (ETH) Price Faces Great Resistance
Ethereum failed to stay above the $ 2,000 support level and continued its decline. ETH even broke the $ 1,800 level and settled well below the 100 hourly simple moving average.
It traded as low as $ 1,731 and recently started an upward correction. Ethereum climbed above the $ 1,800 and $ 1,850 resistance levels. There was a break above the 50% Fib retracement level of the last decline from the $ 2,495 high to $ 1,731 low.
However, it is currently facing strong resistance in the $ 2,200 zone. There is a major bearish trend line with resistance near $ 2,200 on the hourly chart of ETH / USD.
The trendline is near the 61.8% Fib retracement level of the last drop from the $ 2,495 high to $ 1,731 low. A clear break above the trendline resistance could set the pace for a strong move above $ 2,200. The next major resistance is near $ 2,400 and the 100 hourly simple moving average. Further gains could push the price up to $ 2,800.
Will Ethereum (ETH) Fall?
If Ethereum cannot continue above the $ 2,200 and $ 2,400 resistance levels, it could initiate another decline. Initial support on the downside is near the $ 2,000 level.
The first major support is near the $ 1,800 level. The main support is currently forming near the $ 1,700 level and the link support trendline. Further losses could trigger a larger drop towards $ 1,500 in the coming sessions. The next major support is near the $ 1,200 level.
- Hourly MACD – The MACD for ETH / USD is slowly decelerating in the bullish zone.
- Hourly RSI – The RSI for ETH / USD is trying to stay above the 50 level.
- Major Support Level – $ 2,000
- Major Resistance Level – $ 2,200