Why Ethereum (ETH) Topside Bias Vulnerable Unless It Surges Past $2K
- summy Morphe
- July 19, 2021
- 0 Comments
Ethereum is facing an uphill task near the $2,000 zone against the US Dollar. ETH price remains at a risk of a larger decline below the $1,800 support zone.
Ethereum started a fresh decline after it failed to surpass the $2,000 resistance zone.
The price is still trading well below the $2,000 resistance and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $1,975 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could accelerate lower if it fails to move above the $1,950 and $2,000 resistance levels.
Ethereum Price Turns Red
After a failed attempt to clear the $2,000 resistance, ethereum started a fresh decline, similar to bitcoin. ETH price broke the $1,950 support and it settled well below the 100 hourly simple moving average.
The price even declined below the $1,920 support, but the bulls are defending the $1,850 support zone. The recent low was formed near $1,866 and the price is now correcting higher. It is testing the $1,900 resistance zone.
The 23.6% Fib retracement level of the recent decline from the $1,993 swing high to $1,866 low is also near $1,900. The next key resistance is near the $1,920 level and the 100 hourly simple moving average.
The $1,920 resistance is close to the 50% Fib retracement level of the recent decline from the $1,993 swing high to $1,866 low. There is also a key bearish trend line forming with resistance near $1,975 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
A proper break above the trend line resistance is must for a strong move above the $2,000 resistance. The next major resistance is near the $2,050 zone.
Fresh Decline in ETH?
If Ethereum fails to recover above $1,920 and $1,950, it could continue to move down. An initial support on the downside is near the $1,865 level.
The first major support is near the $1,850 level. If ether fails to stay above the $1,850 support, it could decline towards the $1,800 support. Any more losses could set the pace for a drop towards the $1,750 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now close to the 50 level.
Major Support Level – $1,850
Major Resistance Level – $1,950