Ethereum price started a new rally but failed near $2,080. ETH is now correcting gains and could drop below $1,920.
- Ethereum started a negative correction from the $2,080 zone.
- The price is below $1,950 and is moving above the 100-hour simple moving average.
- There is a key bullish channel forming with support at $1,960 on the hourly chart of ETH/USD (via data via Kraken).
- The pair can start a new decline if it stays above the $2,050 zone.
Ethereum price drop for support
The price of Ethereum tried to break above the $2,000 resistance, just like Bitcoin. ETH price broke above the $2,020 and $2,050 resistance levels.
The bulls even pushed the price above $2080. Before there was a negative correction, the high level was formed at $2,089. The price broke below $2,000 and the 50% Fib retracement level of the move above $1,835 dropped to $2,089.
Ethereum price is currently trading above $1,960 and the 100-hour Simple Moving Average. There is also a key bullish channel forming with support at $1,960 on the hourly chart of ETH/USD.
If the bulls remain active above $1,920, the price may attempt another rally. Immediate resistance is seen near the $2,020 level. The first key resistance is near the $2,050 level. The next major resistance is near the $2,080 level. A clear move above the $2,080 resistance could send the price to the $2,120 resistance. An upper break in the $2,120 area could call for more profit in the coming days. In the mentioned case, Ether may rise to the resistance zone of $2200 or even $2220 in the near future.
A break in ETH?
If Ethereum fails to clear the $2,050 resistance, it may start a new decline. Initial support on the downside is near the $1,960 level. The first major support is located near the $1,932 area or the 61.8% fib retracement level of the upward movement from the low swing of $1,835 to $2,089.
A clear move supported by $1,932 could push the price to $1,895. Any further losses could send the price to the $1,850 zone. Key support could be $1,820.
Technical indicators
Hourly MACD – MACD for ETH/USD is accelerating in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
The main support level is $1,932
The main resistance level is $2,050
