Ethereum fell sharply and even tested the USD 2,000 support zone against the US dollar. ETH price is trying to rebound and has to settle for $ 2,800 for a steady rise.
- Ethereum is down over 40% in a week and even tested the $ 2,000 support zone.
- The price is now well below the $ 3,000 level and the 100 hour simple moving average.
- A large contraction triangle is forming on the hourly chart of ETH / USD (data feed via Kraken) with a resistance near USD 2,650.
- The pair will have to settle $ 2,650 and $ 2,800 to move back into positive zone in the short term.
Ethereum price shows signs of recovery
Ethereum continued to find itself in a strong downtrend from well above the $ 3,000 pivot level. ETH fell over 40% in just a few days and even broke the USD 2,500 support zone, similar to Bitcoin.
The bears were able to break out of the USD 2,200 support zone. There was also a surge below $ 2,000 and the price bottomed near $ 1,850. Ether is now recovering and trading above the $ 2,200 level. However, it is well below the $ 3,000 level and 100 hour simple moving average.
The recent swing low was formed near $ 2,149. Immediate resistance is near the $ 2,500 level. It is near the 50% fib retracement level of the recent decline from the high of $ 2,847 to the low of $ 2,149.
Source: ETHUSD on TradingView.com
A large contraction triangle is also forming on the hourly chart of ETH / USD with resistance near USD 2,650. The triangle resistance is close to the Fib retracement level of 61.8% of the recent decline from the high of $ 2,847 to the low of $ 2,149. A successful break above the $ 2,650 and $ 2,800 levels could open the doors for steady rebound in the upcoming sessions. The next major resistance is near the $ 3,125 level.
New decline in ETH?
If Ethereum is no longer above the $ 2,650 and $ 2,800 resistance levels, it could see another drop. Initial support on the downside is near the USD 2,300 level and the triangle trendline.
The first major support is near the USD 2,200 level. The main support is now forming near the $ 2,000 level. If there is a downside break below the $ 2,000 zone, the price could fall towards the $ 1,600 support.
Hourly MACD – – The MACD for ETH / USD is slowly moving into the bullish zone.
Hourly RSI – – The RSI for ETH / USD is now close to the 40 level.
Main support tier – $ 2,000
Main Resistance Level – $ 2,800