Ethereum price started a fresh rise from the $1,900 support. ETH now faces resistance near $2,020, above which it could accelerate further.
- Ethereum found support near $1,900 and started a decent rise.
- The price is trading above $1,980 and the 100 hourly simple moving average.
- A major bearish trend line is forming with resistance near $2,020 on the hourly chart of ETH/USD (data via Kraken).
- The pair could start a strong rise if it breaks the $2,020 resistance zone.
Ethereum price faces obstacles
Last week, Ethereum price started a downward correction from the $2,120 resistance. ETH fell below the $2,020 and $2,000 support levels. It even shot below the $1,920 support.
A low was formed near $1,905 and the price began a steady rise, like Bitcoin. There was a move above the $1,950 and $1,980 resistance levels. The bulls pushed the price above the 50% Fibonacci retracement level of the downward move from the high of $2,092 to the low of $1,905.
Ethereum is now trading above $1,980 and the 100 hourly simple moving average. On the upside, the price faces resistance near the $2,020 zone.
There is also a major bearish trend line forming with resistance near $2,020 on the hourly chart of ETH/USD. The trend line is near the 61.8% Fibonacci retracement level of the downward move from the high of $2,092 to the low of $1,905.
Source: ETHUSD on TradingView.com
A close above the $2,020 resistance could start another sharp rise. The next resistance is near $2,090, above which the price could aim for a move towards the $2,120 level. Any further gains could start a wave towards the $2,200 level.
Another drop in ETH?
If Ethereum fails to overcome the $2,020 resistance, it could start a new decline. Initial support on the downside is near the $1,980 level and the 100 hourly simple moving average.
The next key support is $1,950. The main support is $1,900. A downside break below the $1,900 support could trigger further losses. In the indicated case, Ether could fall towards the $1,850 support zone in the short term. Any further losses could lead to a fall towards the $1,800 level.
Technical Indicators
MACD hourly – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Main Support Level: $1,950
Main Resistance Level: $2,020
