Ethereum has initiated a downwards correction below the $2,000 mark. For a fresh upturn in the near term, ETH must maintain pressure above the $1,920 level. A set of fluctuations have seen Ethereum counterbalance gains whilst testing the support zone of $1,920. The digital currency is now being traded for less than $2,000, concurrently staying below the 100-hourly Simple Moving Average.
A crucial bearish trend line is forming with roadblocks around the $2,000 mark on the hourly graph of ETH/USD. There could be a new rally if Ethereum manages to surpass this resistance in near future.
Despite a struggle to clear the $2,120 resistance, Ethereum mirrored Bitcoin in its downside correction. Ethereum fell below the support levels of $2,050 and $2,000. Bulls remained resilient above the $1,920 support zone, managing a low formation near $1,933. Moves are now being made to downscale losses, trading near the 23.6% Fib retracement level of the slump from the $2,118 high to the $1,933 low.
Ethereum is once again trading for less than $2,000, under 100-hourly Simple Moving Average. Unsurprisingly, immediate resistance floats near the $2,000 zone. The next significant resistance poses at $2,025, in alignment with a 100-hourly Simple Moving Average or the 50% Fib retracement level of the descent from $2,118 to $1,933. Any further escalation could spur a decent increase if a close above the trend line and $2,025 is achieved.
A significant $2,075 barrier is encountered for further resistance. Breaching of this wall may set Ethereum on a course towards the $2,120 line. Any additional gains could establish a surge towards the $2,250 level. However, if Ethereum fails to clear the $2,000 resistance barrier, it would indicate the beginning of a new drop. Initial support on the downside is near the $1,950 level.
The next substantial support rests at $1,920. A breach below this might spur a steep downturn. In this scenario, Ether could fall towards the $1,850 support zone in the near term with potential further losses paving the way to the $1,800 level. As for technical indicators, the MACD for ETH/USD is losing traction in the bearish zone whilst the RSI for ETH/USD is now below the 50 level.
Major Support Level stands sturdy at $1,920, while the Major Resistance Level is positioned at $2,025. The rapidly evolving landscape of cryptocurrency markets holds the promise of further developments.
