Ethereum Trims Losses, Why ETH Could Face Hurdles Near $2,060
Ethereum dived towards the $1,700 level before it started a strong recovery against the US Dollar. ETH price is back above $2,000, but it is likely to face hurdles near $2,060.
Ethereum extended its decline below $1,800 before it started a steady recovery.
The price is still trading below $2,100 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $2,140 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to face a strong resistance near the $2,060 and $2,100 levels in the near term.
Ethereum Price Recovers Losses
Ethereum extended its decline below the $1,850 support, like bitcoin. ETH even traded below the $1,800 and $1,750 support levels to move further into a bearish zone.
The price tested the $1,700 level before it started a decent recovery wave. Ether climbed higher nicely above the $1,880 and $1,950 resistance levels. The bulls pushed the price above the 50% Fib retracement level of the of the recent decline from the $2,280 swing high to $1,703 low.
Moreover, there was a break above a short-term bearish trend line with resistance near $1,940 on the hourly chart of ETH/USD. The pair is still trading below $2,100 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The 61.8% Fib retracement level of the of the recent decline from the $2,280 swing high to $1,703 low is also near the $2,060 zone. The main resistance is now forming near the $2,150 level. There is also another major bearish trend line forming with resistance near $2,140 on the same chart. To move into a positive zone, ether price must clear the $2,060 and $2,150 levels in the near term.
Fresh Drop in ETH?
If Ethereum fails to clear the $2,060 and $2,150 resistance levels, it could start a fresh decline. An initial support on the downside is near the $1,940 level.
The first major support is now forming near the $1,900 level and the broken trend line. The main breakdown support is now forming near the $1,840 level. A downside break below the $1,840 could start a fresh slide towards the $1,700 zone in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently rising towards the 60 level.
Major Support Level – $1,940
Major Resistance Level – $2,060