Ethereum Price is Primed For a Rally And Only 1 Thing is Holding it Back

Ethereum price is correcting gains from the $1,920 resistance against the US Dollar. ETH could start a fresh rally if it clears the $1,920 and $1,930 resistance levels.

Ethereum Price Reaches Key Support

Ethereum’s price started a downside correction after it failed to clear the $1,920 resistance zone. ETH corrected lower below the $1,900 level, similar to Bitcoin.

There was a move below the 23.6% Fib retracement level of the key increase from the $1,836 swing low to the $1,930 high. However, the bulls were active above the $1,870 support zone. There is also a crucial bullish trend line forming with support near $1,890 on the hourly chart of ETH/USD.

Ether is now trading above $1,880 and the 100-hourly Simple Moving Average. Immediate resistance is near the $1,920 zone. The next major resistance is near the $1,930 level.

Source: ETHUSD on TradingView.com

A proper move above the $1,920 and $1,930 resistance levels might send Ether toward $2,000. The next resistance sits near $2,050, above which Ethereum could rise toward $2,120. Any more gains above the $2,120 resistance zone might send the price toward the $2,250 resistance. An intermediate resistance might be $2,200.

Downside Break in ETH?

If Ethereum fails to clear the $1,920 resistance, it could continue to move down. Initial support on the downside is near the $1,890 level and the trend line.

The next major support is near the $1,870 zone or the 100-hourly Simple Moving Average. It is close to the 61.8% Fib retracement level of the key increase from the $1,836 swing low to the $1,930 high. If there is a close below the $1,870 support, the price could decline toward the $1,840 support. Any more losses may perhaps send the price toward the $1,800 level or even $1,780 in the coming sessions.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is below the 50 level.

Major Support Level – $1,870

Major Resistance Level – $1,920

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