Ethereum price started a bullish correction above $1,850 against the US Dollar. ETH could start another slide if it continues to struggle near $1,900.
- Ethereum is attempting an upward correction above $1,850.
- The price is trading below $1,880 and the 100 hourly simple moving average.
- A major downtrend line is forming with resistance near $1,870 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue moving lower if it sustains below $1880 and $1900.
Ethereum Price Faces Resistance
Ethereum price managed to stay above the $1800 support zone. ETH formed a base and recently started a bullish correction above $1,850, similar to Bitcoin at $28,000.
The price was able to rally above the 23.6% Fibonacci retracement level of the key dip from the $1,940 high to $1,805 low. However, the price struggled to break above the $1,880 resistance zone and it failed to hold above the 100 hourly simple moving average.
Ether is now trading below $1,880 and the 100 hourly simple moving average. She appears to be facing obstacles near the 50% Fibonacci retracement level of the key dip from the $1,940 high to $1,805 low.
There is also a major downtrend line forming with resistance near $1,870 on the hourly chart of ETH/USD. The next big resistance seems to be forming near $1,900. A close above the $1900 level could start a new rally. In the indicated case, the price could rally towards the $1,950 resistance.
Fountain: ETHUSD on TradingView.com
Further gains could send Ether towards the $2,000 resistance. In the indicated case, Ether could even try to move towards the $2,000 zone, above which the price could gain bullish momentum and even test $2,120.
New drop in ETH?
If Ethereum fails to clear the $1,880 resistance, another bearish wave could start. Initial support on the downside is near the $1,840 level.
The next major support is near the $1800 zone or the latest low, below which the price of ether could fall towards the $1765 support zone. Any further losses could send the price looking towards the $1,720 level in the short term.
technical indicators
MACD per hour – The MACD for ETH/USD is now losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is above the 50 level.
Major Support Level: $1,840
Highest Resistance Level: $1,880
