Ethereum Is Forming A Bullish Pattern, But This Level Is Crucial


Ethereum extended its decline and tested the $1,920 support against the US dollar. ETH is rising and it could revisit the key USD 2,085 resistance zone.

Ethereum held steady above the key USD 1,920 support zone. The price is now trading above $2,000 and the 100 hourly simple moving average. There was a break above a key bearish trendline with resistance near $1,980 on the ETH/USD hourly chart (data feed via Kraken). The pair could rise further, but the $2,085 zone is a major hurdle.

Ethereum Price Recovers Above $2K

Ethereum extended its decline after it broke the $1,950 support and the 100 hourly simple moving average. However, the bulls took a strong position near the $1,920 support.

It hit a low near $1,911 and the price started a recovery. There was a marked move above the USD 1,950 and USD 1,960 resistance levels. Ether price climbed above the 50% Fib retracement level of the downward move from the $2,083 swing high to $1,911 low.

Additionally, there was a break above a key bearish trendline with resistance near $1,980 on the ETH/USD hourly chart. Ether price is now trading above $2,000 and the 100 hourly simple moving average.

The price is now facing resistance near the USD 2,020 level. It is near the 61.8% Fib retracement level of the downward move from the $2,083 swing high to $1,911 low. The next major resistance is near the USD 2,040 level. The main resistance is now forming near the USD 2,085 level. A close above the $2,085 level could open the doors for a steady rise.

Source: ETHUSD on TradingView.com

In the case mentioned, ether price could rise towards the USD 2,200 resistance. More gains may send it into the key USD 2,250 resistance zone.

New Drop in ETH?

If ethereum fails to recover above the USD 2,400 resistance, it could start another decline. A first drawback is that it is near the $1,995 zone and the 100-per-hour SMA.

The next major support is near the $1,970 level. A downward breach below the $1,970 level could require another test of the key $1,920 support. More losses may pave the way for a sharp drop to USD 1,800.

Technical indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,970

Major Resistance Level – $2,085

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