- Ethereum’s price experienced a setback after failing to break the $2,070 resistance.
- Key support levels and resistance levels are crucial for Ethereum’s recovery.
Ethereum’s price encountered obstacles while attempting to break above the $2,070 resistance level. The downturn followed reports of Binance’s settlement, which also impacted Bitcoin’s price.
The bearish momentum pushed Ethereum’s price below the critical $2,000 support zone, even breaching the 100-hourly Simple Moving Average (SMA). However, ETH managed to hold above the $1,920 support zone and formed a low near $1,930. Currently, Ethereum is making an effort to stage a recovery.
Ethereum initiated a rebound by breaking above the 23.6% Fibonacci retracement level of the recent decline from the $2,068 swing high to the $1,930 level. However, it remains below the $2,000 mark and the 100-hourly Simple Moving Average.
On the upside, Ethereum is encountering resistance around the $1,990 zone, along with the presence of a crucial bearish trend line near $1,990 on the hourly ETH/USD chart. The primary resistance level to monitor is at $2,000, which aligns with the 50% Fibonacci retracement level of the recent downtrend from the $2,068 swing high to the $1,930 low.
A clear move above the $2,000 level could trigger bullish momentum, with the next resistance level situated at $2,070. If Ethereum manages to surpass this resistance, it may target the $2,120 level, and further gains could potentially lead to a move toward $2,200.
Potential for Further Losses
If Ethereum fails to break above the $2,000 resistance, it might experience additional downside pressure. The initial support level on the downside is near $1,950. The subsequent key support is at $1,930 or $1,920. The primary support remains around $1,905, and a breach below this level could result in more losses. In such a scenario, Ethereum could drop toward the $1,820 support zone in the short term.
Technical Indicators:
- Hourly MACD – The MACD for ETH/USD is currently showing a loss of bearish momentum.
- Hourly RSI (Relative Strength Index) – The RSI for ETH/USD is currently hovering near the 50 level.
Major Support Level: $1,930
Major Resistance Level: $2,000
