Ethereum is correcting downwards, which could trigger a new rally

Ethereum continued to rebound towards $ 2,250 before facing sellers against the US dollar. ETH price corrects down, but the bulls are likely to remain active near the $ 2,000 mark.

  • Ethereum began a downward correction after testing the USD 2,250 resistance zone.
  • The price is still well above $ 2,000 and the 100-hour simple moving average.
  • A large bullish trendline is forming on the hourly chart of ETH / USD (data feed via Kraken) with support near USD 1,975.
  • The pair may give way in the short term, but the bulls could protect the USD 2,000 support zone.

Ethereum price is still supported

Ethereum stayed well above the USD 2,000 support zone and extended its upward move. ETH outperformed the USD 2,150 resistance zone and the 100-hour simple moving average.

The price even surged above the $ 2,200 mark. Ether tested the $ 2,240 zone before the bears showed up. A high formed at $ 2,241 before a downward correction set in. There was a break below the USD 2,200 support zone.

There was also a break below a connecting bullish trendline with support near USD 2,160 on the ETH / USD hourly chart. The pair is now testing the 23.6% fib retracement level of the move up from the low of $ 1,716 to the high of $ 2,241.

Source: ETHUSD on TradingView.com

The next big support is near the $ 2,070 mark, followed by the 100-hour SMA. There is also a large bullish trendline with support near $ 1,975 on the same chart. The trendline is near the 50% Fib retracement level of the move up from the low of $ 1,716 to the high of $ 2,241.

Further losses could trigger a steady decline below $ 1,950. The next big downside support is near the $ 1,850 mark.

New rise in ETH?

If Ethereum stays above trendline support and $ 1,950 it could start a new spike. Immediate resistance to the upside is near the $ 2,200 mark.

The next major resistance is near the USD 2,250 zone. Further gains could set the pace for a move towards the $ 2,320 mark. In that case, the bulls might even aim for a test of $ 2,500 in the short term.

Technical indicators

Hourly MACDThe MACD for ETH / USD is slowly losing pace in the upward zone.

Hourly RSIThe RSI for ETH / USD is currently just below the 50 mark.

Great level of support – $ 2,000

Great resistance level – $ 2,250

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