Ethereum Price Trims Gains But This Support Could Spark Fresh Increase
Ethereum price started a downside correction from the $1,940 zone against the US Dollar. ETH might revisit the key $1,840 support in the near term.
- Ethereum failed to clear the $1,925 and $1,940 resistance levels.
- The price is trading below $1,880 and the 100-hourly Simple Moving Average.
- There was a break below a key bullish trend line with support near $1,870 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could further lower but the bulls might be active near the $1,840 support.
Ethereum Price Corrects Lower
Ethereum’s price attempted more upsides above the $1,925 and $1,940 resistance levels. However, ETH struggled to settle above the $1,925 resistance zone, similar to Bitcoin.
As a result, there was a bearish reaction below the $1,900 level. The bears were able to push the price below the 50% Fib retracement level of the upward move from the $1,850 swing low to the $1,938 high. Besides, there was a break below a key bullish trend line with support near $1,870 on the hourly chart of ETH/USD.
Ether price is now trading below $1,880 and the 100-hourly Simple Moving Average. It is also showing a few bearish signs below the $1,865 support.
If there is a recovery wave, the price might face resistance near $1,880 and the 100-hourly Simple Moving Average. The next major resistance is near the $1,900 zone. The main resistance is now forming near the $1,925 and $1,940 levels.
Source: ETHUSD on TradingView.com
A close above the $1,925 level with a follow-up move above $1,940 might send the price toward the $2,000 resistance. The next major resistance might be $2,120. Any more gains could set the pace for a test of the $2,200 resistance.
More Losses in ETH?
If Ethereum fails to clear the $1,880 resistance, it could continue to move down. Initial support on the downside is near the $1,850 level or the 76.4% Fib retracement level of the upward move from the $1,850 swing low to the $1,938 high.
The next major support is near the $1,840 zone, below which ether price might decline toward the $1,825 level. If there is a break below $1,825, the price might extend its decline toward $1,780.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 60 level.
Major Support Level – $1,840
Major Resistance Level – $1,880
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