Ethereum Struggling Below $2K, Why Bears Stay in Action


Ethereum struggled to gain momentum above the $2,000 resistance against the US dollar. ETH is declining but is still above the key $1,920 support zone.

Ethereum is showing some bearish signs below the $2,000 mark. The price is now trading below $2,000 and the 100 hourly simple moving average. A major bearish trendline is forming with resistance near $1,970 on the ETH/USD hourly chart (data feed via Kraken). The pair could fall sharply if there is significant movement below the $1,920 support zone.

Ethereum Price Drops Below $2K

Ethereum climbed above the $1,950 resistance and the 100 hourly simple moving average. However, the bears protected big gains above the key $2,000 zone.

The price started another decline from the swing high of $2,020. There was a clear move below the $1,980 and $1,950 levels. Ether is now trading below $2,000 and the 100 hourly simple moving average. A low is being formed near $1,931 and the price is now consolidating losses.

On the upside, an initial resistance is near the $1,950 level. It is near the Fib retracement level of 23.6% from the recent drop from the swing high from $2,020 to $1,931 low.

The next major resistance is near the $1,970 level. A major bearish trendline is also forming with resistance near $1,970 on the ETH/USD hourly chart. The trendline is near the 50% Fib retracement level from the recent drop from the $2,020 swing high to $1,931 low.

Source: ETHUSD on TradingView.com

The main resistance is now forming near the USD 2,000 level. A close above the USD 2,000 level could open the doors for a steady rise. In the mentioned case, ether price could rise towards the $2,085 resistance zone. More gains may send it into the key USD 2,200 resistance zone.

Lose more in ETH?

If ethereum fails to recover above the $2,000 resistance, it could continue to fall. An initial support on the downside is near the $1,930 zone.

The next major support is near the $1,920 level. A downside breach below the $1,920 level could necessitate a sharp decline. In the mentioned case, the price could plunge towards the $1,850 level. If there are additional losses, a move to $1800 may be required.

Technical indicators

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

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

Major Support Level – $1,920

Major Resistance Level – $2,000

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