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Ethereum Price Retests Uptrend Support But Can Bulls Save The Day
Ethereum price started a downside correction below $1,950 against the US Dollar. ETH is testing the $1,900 support and is showing a few bearish signs.
Ethereum Price Corrects Gains
Ethereum’s price failed to clear the $1,975 resistance and started a downside correction. ETH traded below the $1,950 level and extended its decline, similar to Bitcoin.
There was a move below the $1,920 support. Finally, the price spiked below $1,900. A low is formed near $1,894 and the price is now consolidating losses. It is now trading near the 23.6% Fib retracement level of the recent decline from the $1,974 swing high to the $1,894 low.
Ether is trading below $1,940 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance near $1,925 on the hourly chart of ETH/USD.
Immediate resistance is near the $1,925 level the 100-hourly Simple Moving Average. The next major resistance is near the $1,945 level. It is close to the 61.8% Fib retracement level of the recent decline from the $1,974 swing high to the $1,894 low.
Source: ETHUSD on TradingView.com
A clear move above the $1,945 resistance could push the price toward $1,975. The main resistance is still near the $2,000 level, above which the price could start a decent increase. The next major resistance is near the $2,120 level. Any more gains could send Ether toward the $2,200 resistance.
More Losses in ETH?
If Ethereum fails to clear the $1,925 resistance or $1,945, it could continue to move down. Initial support on the downside is near the $1,900 level.
The first major support is near the $1,870 level. The next major support is near the $1,820 level. If there is a move below the $1,820 support, the price could drop toward the $1,770 support level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,900
Major Resistance Level – $1,945