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Ethereum Price Could See Downside Thrust Before Fresh Increase
Ethereum price is correcting gains from the $1,880 zone against the US Dollar. ETH could spike toward $1,820 before the bulls attempt a fresh increase.
Ethereum Price Dips Again
Ethereum’s price struggled to clear the $1,880 resistance zone and started a downside correction. ETH slowly moved lower below the $1,850 pivot level, similar to Bitcoin.
There was a drop below the 23.6% Fib retracement level of the key increase from the $1,800 swing low to the $1,876 high. The bears even pushed the price below the 100-hourly Simple Moving Average. Besides, there is a bullish flag pattern forming with resistance near $1,855 on the hourly chart of ETH/USD.
Ether is now trading below $1,850 and the 100-hourly Simple Moving Average. On the upside, immediate resistance is near the $1,855 level and the channel zone.
Source: ETHUSD on TradingView.com
The first major resistance is near the $1,872 level. The next key resistance is near the $1,880 level. A close above the $1,880 level could increase the chances of a steady increase toward $1,920. Any more gains might send the price toward the $2,000 hurdle, above which the price could rise toward the $2,040 level or even $2,120.
Downside Break in ETH?
If Ethereum fails to clear the $1,855 resistance, it could continue to move down. Initial support on the downside is near the $1,840 level or the 50% Fib retracement level of the key increase from the $1,800 swing low to the $1,876 high.
The first major support is near the $1,830 zone or the channel lower trend line. If the bulls fail to protect the $1,820 support, there could be a sharp decline. The next major support is near the $1,800 support level. Any more losses might send the price toward the $1,720 level in the near term.
Technical Indicators
Hourly MACD – 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.
Major Support Level – $1,820
Major Resistance Level – $1,880