Ethereum Price Stuck Under $2,050, Bulls Seek Recovery Catalyst

Ethereum price started a fresh increase but failed near $2,080. ETH is now correcting gains and might decline further below $1,920.

• Ethereum started a downside correction from the $2,080 zone.
• The price is trading below $1,950 and the 100-hourly Simple Moving Average.
• There is a key rising channel forming with support at $1,960 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh decline if it stays below the $2,050 zone.

Ethereum Price Dips To Support

Ethereum price attempted a fresh increase above the $2,000 resistance, like Bitcoin. ETH price rallied above the $2,020 and $2,050 resistance levels.

The bulls even pumped the price above $2,080. A high was formed at $2,089 before there was a downside correction. The price dipped below $2,000 and the 50% Fib retracement level of the upward move from the $1,835 swing low to the $2,089 high.

Ethereum price is now trading above $1,960 and the 100-hourly Simple Moving Average. There is also a key rising channel forming with support at $1,960 on the hourly chart of ETH/USD.

If the bulls remain in action above $1,920, the price could attempt another increase. Immediate resistance is seen near the $2,020 level. The first key resistance is near the $2,050 level. The next major resistance is near the $2,080 level. A clear move above the $2,080 resistance might send the price toward the $2,120 resistance. An upside break above the $2,120 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,200 resistance zone or even $2,220 in the near term.

Downside Break In ETH?

If Ethereum fails to clear the $2,050 resistance, it could start a fresh decline. Initial support on the downside is near the $1,960 level. The first major support sits near the $1,932 zone or the 61.8% Fib retracement level of the upward move from the $1,835 swing low to the $2,089 high.

A clear move below the $1,932 support might push the price toward the $1,895 support. Any more losses might send the price toward the $1,850 region. The main support could be $1,820.

Technical Indicators

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

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

Major Support Level – $1,932

Major Resistance Level – $2,050