ethereum price corrected lower and tested the $1,935 support. eth is likely forming a double bottom and could start a decent rise.
- ethereum reacted lower and tested the support at $1,935.
- The price is trading below $2,020 and the 100 hourly simple moving average.
- There was a break below a key contraction triangle with support near $2,025 on the hourly chart of eth/USD (data via Kraken).
- The pair is likely forming a double bottom pattern and could outperform bitcoin.
ethereum Price Review $1,935
After facing rejection near the $2,090 zone, ethereum price reacted lower. eth traded below the $2,050 and $2,020 support level to enter a short-term bearish zone, like bitcoin.
There was also a break below a key contraction triangle with support near $2,025 on the hourly chart of eth/USD. However, the bulls positioned themselves near the $1,935 support zone. It appears that Ether is likely forming a double bottom pattern, while bitcoin is forming a double top near $38,000.
ethereum is now trading above the 23.6% Fibonacci retracement level of the downward move from the high of $2,092 to the low of $1,935. Immediate resistance is near the $2,000 area.
The first major resistance is near $2,020 or the 100 hourly simple moving average. It is close to the 61.8% Fibonacci retracement level of the downside move from the high $2,092 to the low $1,935. A close above the $2,020 resistance could start another strong rise.
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Fountain: ETHUSD on TradingView.com
The next resistance is near $2,090, above which the price could aim for a move towards the $2,120 level. Any further gains could start a wave towards the $2,200 level.
More losses on eth?
If ethereum fails to overcome the $2,020 resistance, it could start a new decline. Initial support on the downside is near the $1,950 level. The next key support is $1,935.
The main support is $1,920. A downside break below the $1,920 support could start a steady decline. In the indicated case, Ether could fall towards the $1,850 support zone in the short term. Any further losses could lead to a fall towards the $1,800 level.
Technical Indicators
MACD hourly – The MACD for eth/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for eth/USD is now below the 50 level.
Main Support Level: $1,935
Main Resistance Level: $2,020
