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TA: Ethereum Dips But Here’s Why ETH Could Start Fresh Increase

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Ethereum failed to clear the $2,085 resistance and declined against the US Dollar. ETH must stay above $1,920 to start a fresh increase in the near term.

  • Ethereum failed to clear the $2,085 and $2,100 resistance levels.
  • The price is now trading below $2,000 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $2,000 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move down towards the main $1,920 support zone.

Ethereum Price Trades Below $2K

Ethereum attempted to clear the $2,085 and $2,100 resistance levels. However, ETH failed to gain strength and formed a short-term top near the $2,085 level.

There was a bearish reaction below the $2,050 support level. Besides, there was a break below a key bullish trend line with support near $2,000 on the hourly chart of ETH/USD. There was a move below the 50% Fib retracement level of the upward move from the $1,920 swing low to $2,085 high.

Ether price is now trading below $2,000 and the 100 hourly simple moving average. It even tested the 76.4% Fib retracement level of the upward move from the $1,920 swing low to $2,085 high.

The price is now consolidating near the $1,980 level. The first major resistance is near the $2,000 level and the 100 hourly simple moving average. The main resistance is now forming near the $2,085 level. A close above the $2,085 level could open the doors for a decent increase.

Ethereum Price

Source: ETHUSD on TradingView.com

In the stated case, ether price might rise towards the $2,150 resistance. Any more gains may perhaps send it towards the key $2,200 resistance zone.

More Losses in ETH?

If ethereum fails to recover above the $2,000 resistance, it could continue to move down. An initial support on the downside is near the $1,960 zone.

The next major support is near the $1,920 level. A close below the $1,920 level might restart downtrend. In the stated case, the price could dive towards the $1,900 level. The next major support might be near the $1,800 and $1,780 levels in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now losing momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,920

Major Resistance Level – $2,085

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