Ethereum is slowly falling below $1,900 against the US dollar. ETH needs to hold above his $1,850 to avoid further losses in the near term.
- Ethereum has started a downward correction below $1,920.
- The price is currently trading below $1,920 and the 100 hour simple moving average.
- The ETH/USD hourly chart (data feed via Kraken) has formed an important descending channel with resistance near $1,900.
- The pair can continue to fall below $1,900 and $1,950.
Ethereum Price Faces Resistance
Ethereum has begun a downward correction well above the $2,000 resistance zone. ETH has slowly broken below the $1,950 and $1,920 levels.
It has clearly broken below the $1,900 level and the 100 hour simple moving average. Ether price traded at $1,854 and remained stable above the $1,850 support zone. It is now consolidating losses above the $1,860 level.
The immediate resistance to the upside is near $1,900 and the 100 hour simple moving average. This is close to the 23.6% Fib retracement level of the recent drop from $2,030 high to $1,854 low. A major descending channel with resistance near $1,900 has also formed on the ETH/USD hourly chart.
The first big resistances are near $1,920 and $1,925. A major breakout zone has formed near the $1,950 level, or the 50% Fib retracement level of the recent decline from the swing high of $2,030 to the low of $1,854.
Source: ETHUSD on TradingView.com
A clear break above the $1,950 resistance could lead to a steady rally to $2,000. Any further upside will likely lead the price to gain bullish momentum and he could test the $2,080 resistance zone soon.
Further loss of ETH?
If Ethereum fails to break out of the $1,925 resistance, it may continue to fall. The first support on the downside is near $1,860.
The next major support is near $1,850, below which there is a risk of a sharp decline. In the aforementioned case, the Ether price could possibly fall towards he $1,810 level. If the bear market continues, the price could even fall to $1,750.
Hourly MACD – ETH/USD’s MACD is currently losing momentum in the bearish zone.
Hourly RSI – ETH/USD RSI is currently above the 50 level.
Major Support Level – $1,850
Major Resistance Level – $1,925