Ethereum price started a downside correction below the $2,100 level against the US Dollar. ETH found support near $2,050 and now aiming for a fresh increase.
- Ethereum started a short-term downside correction below the $2,100 level.
- The price is trading above $2,050 and the 100-hourly Simple Moving Average.
- There was a break above a key bearish trend line with resistance near $2,080 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if there is a clear move above $2,100.
Ethereum Price Eyes Fresh Increase
Ethereum’s price started a downside correction from the $2,125 resistance zone. ETH declined below the $2,100 and $2,080 levels, similar to Bitcoin.
It tested the $2,050 support zone. A low is formed near $2,049 and the price is now slowly moving higher. There was a break above the $2,080 resistance zone. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,142 swing high to the $2,049 low.
Besides, there was a break above a key bearish trend line with resistance near $2,080 on the hourly chart of ETH/USD. The pair is now trading above $2,050 and the 100-hourly Simple Moving Average.
Source: ETHUSD on TradingView.com
Immediate resistance is near the $2,100 zone. It is near the 50% Fib retracement level of the downward move from the $2,142 swing high to the $2,049 low. The next major resistance is near the $2,125 zone or the recent high. A close above the $2,125 resistance zone could spark another rally. In the stated case, the bulls might aim for a move toward the $2,200 resistance. Any more gains could send Ether toward the $2,320 resistance in the coming days.
More Losses in ETH?
If Ethereum fails to clear the $2,100 resistance, it could continue to move down. Initial support on the downside is near the $2,060 level and the 100-hourly Simple Moving Average.
The next major support is near the $2,050 zone, below which ether price might gain bearish momentum. In the stated case, the price could revisit $2,000. Any more losses may perhaps open the doors for a move toward the $1,925 and $1,920 levels.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is just below the 50 level.
Major Support Level – $2,050
Major Resistance Level – $2,125