TA: Ethereum Breaks $2K, Here’s What Could Spark A Decent Recovery

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Ethereum extended its decline and it even broke the $2,000 support against the US Dollar. ETH price is now recovering and it might correct higher towards $2,150.

  • Ethereum extended its decline below the $2,050 and $2,000 support levels.
  • The price is now trading well below $2,200 and the 100 hourly simple moving average.
  • There was a break above a short-term declining channel with resistance near $1,950 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could recover above the $2,000 level, but the bears might protect the $2,200 zone.

Ethereum Price Turns Red

Ethereum remained in a bearish zone below the $2,300 level, similar to bitcoin. ETH even traded below the $2,200 and $2,100 support levels to move further into a bearish zone.

There was also a break below the $2,000 support zone and a close below the 100 hourly simple moving average. A low was formed near $1,847 and the price is now recovering higher. Ether price was able to climb above the $1,920 and $1,950 levels.

There was a clear break above the 23.6% Fib retracement level of the of the recent decline from the $2,283 high to $1,847 low. Moreover, there was a break above a short-term declining channel with resistance near $1,950 on the hourly chart of ETH/USD.

The pair is now showing a few positive signs above $1,950. An immediate resistance on the upside is near the $2,000 level. The first major resistance on the upside is near the $2,065 level.

Ethereum Price

Source: ETHUSD on TradingView.com

It is close to the 50% Fib retracement level of the of the recent decline from the $2,283 high to $1,847 low. The main resistance is now forming near the $2,150 level and the 100 hourly simple moving average.

More Losses in ETH?

If Ethereum fails to clear the $2,065 and $2,150 resistance levels, it could continue to move down. An initial support on the downside is near the $1,920 level.

The main breakdown support is now forming near the $1,850 level. A downside break below the recent low and the $1,850 support level may possibly call for more losses. In the stated case, ether price is likely to decline towards $1,720 in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly recovering in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently rising towards the 50 level.

Major Support Level – $1,850

Major Resistance Level – $2,065

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