Ethereum price did not hold above $2,000 and corrected lower against the US dollar. ETH could start a new rally if there is a move above $1,950.
- Ethereum started a downward correction and tested the $1900 level.
- The price is trading below $1,950 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,930 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh rise if it breaks above the $1,930 and $1,950 resistance levels.
Ethereum price could restart the rally
Ethereum price rallied above the $1970 resistance. ETH even broke above $2,000 but failed to extend the gains. A high was formed near $2,027 before there was a bearish reaction.
There was a move below the $1,950 support zone and the 100 hourly simple moving average. The price even tested the $1,900 level. A low is formed near $1,900 and the price is now consolidating losses. It is trading near the 23.6% Fibonacci retracement level from the $2,027 high to $1,900 low.
Ether is also trading below $1,950 and the 100 hourly simple moving average. Additionally, a key downtrend line is forming with resistance near $1,930 on the hourly chart of ETH/USD.
To the upside, immediate resistance is near the $1930 level. The first major resistance is near the $1950 zone, above which the price could rally towards the $1975 resistance zone. It is close to the down move of the 61.8% Fibonacci retracement level from the $2,027 high to $1,900 low.
Fountain: ETHUSD on TradingView.com
The next major resistance is near the $2,000 level. Further gains could send Ether towards the $2,050 or even $2,120 resistance.
More losses in ETH?
If Ethereum fails to clear the $1,930 resistance, it could suffer a further drop. Initial support on the downside is near the $1,920 level.
The first major support is near the $1,900 level, below which the price could gain bearish momentum. The next major support is near the $1,850 support level. Further losses could send Ether towards the $1,825 support level in the near term.
technical indicators
MACD per hour – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major Support Level: $1,900
Highest Resistance Level: $1,950
