Ethereum dipped towards the $ 1,700 level before initiating a strong rebound against the US dollar. ETH price is back above $ 2,000 but is likely to hit hurdles near $ 2,060.
- Ethereum extended its decline below $ 1,800 before embarking on a steady rebound.
- The price is still trading below $ 2,100 and the 100-hour simple moving average.
- A large bearish trendline is forming on the hourly chart of ETH / USD (data feed via Kraken) with resistance near $ 2,140.
- The pair is likely to encounter strong resistance near the $ 2,060 and $ 2,100 levels in the near future.
Ethereum price makes up for losses
Ethereum extended its decline below the $ 1,850 support, as it did with Bitcoin. ETH even traded below the USD 1,800 and USD 1,750 support levels to move further into a bearish zone.
The price tested the $ 1,700 level before embarking on a decent wave of recovery. Ether climbed well above the $ 1,880 and $ 1,950 resistance levels. The bulls pushed the price above the 50% fib retracement level of the recent decline from the high of $ 2,280 to the low of $ 1,703.
Additionally, the ETH / USD hourly chart broke through a short-term bearish trendline with resistance near $ 1,940. The pair is still trading below $ 2,100 and the 100-hour simple moving average.
Source: ETHUSD on TradingView.com
The 61.8% fib retracement level of the recent decline from the high of $ 2,280 to the low of $ 1,703 is also near the $ 2,060 zone. The main resistance is now forming near the $ 2,150 mark. There is also another major bearish trendline with resistance near $ 2,140 on the same chart. In order to get into a positive zone, the ether price has to cross the USD 2,060 and USD 2,150 levels in the short term.
Fresh drops at ETH?
If Ethereum fails to break through the USD 2,060 and USD 2,150 resistance levels, it could see another drop. Initial downside support is near the $ 1,940 level.
The first major support is now forming near the USD 1,900 mark and the broken trend line. The main breakthrough support is now forming near the $ 1,840 mark. A downside break below $ 1,840 could trigger another drop towards the $ 1,700 zone in the coming sessions.
Hourly MACD – The MACD for ETH / USD is now moving in bullish territory.
Hourly RSI – The RSI for ETH / USD is currently rising towards the 60 level.
Large support tier – $ 1,940
Great resistance level – $ 2,060