TA: Ethereum Fails Above $2K, Why ETH Could Resume Its Slide

Ethereum attempted a decent recovery, but it failed above $2,000 against the US Dollar. ETH price is trimming gains and it might continue to move down towards $1,850.

• Ethereum failed to clear the $2,050 and $2,060 resistance levels.
• The price is trading well below $2,000 and the 100 hourly simple moving average.
• There is a crucial bearish trend line forming with resistance near $2,060 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is likely to continue lower unless there is a strong close above $2,000 in the near term.

Ethereum Price Trims Gains

Ethereum found a strong support near the $1,700 zone, like bitcoin. ETH started a decent recovery wave above the $1,800 and $1,900 levels.

There was a break above the 50% Fib retracement level of the of the key drop from the $2,285 swing high to $1,700 swing low. However, ether price cleared failed to surpass the $2,050 and $2,060 resistance levels.

It is now trading well below $2,000 and the 100 hourly simple moving average. The price also failed near the 61.8% Fib retracement level of the of the key drop from the $2,285 swing high to $1,700 swing low. Besides, there is a crucial bearish trend line forming with resistance near $2,060 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

An immediate resistance on the upside is near the $1,950 level. The first major resistance is near the $2,000 zone and the 100 hourly SMA. The main barrier is near the trend line and $2,050. To move into a positive zone, ether price must clear the $2,000 and $2,050 levels in the near term.

More Losses in ETH?

If Ethereum fails to clear the $2,000 and $2,050 resistance levels, it could continue to move down. An initial support on the downside is near the $1,850 level.

The first major support is now forming near the $1,820 level. The main support is now forming near the $1,800 level. A downside break below the $1,800 zone could put a lot of pressure on the bulls. In the stated case, the price is likely to revisit the $1,700 zone in the near term.

Technical Indicators

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

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

Major Support Level – $1,850

Major Resistance Level – $2,000

Source