TA: Ethereum Turns Red, Why Recovery Could Be Attractive To Sellers

Aayush Jindal

1 year ago

2 mins read

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Ethereum extended its decline below the $2,200 support zone against the US Dollar. ETH price is showing bearish signs and it might dive further towards $2,000.

Ethereum is down over 10% and it even spiked below the $2,100 support zone.
The price is now trading below the $2,200 support and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $2,200 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct higher, but sellers are likely to remain active near the $2,200 zone.

Ethereum Price Extends Losses

There was no major recovery in ethereum above the $2,300 level. ETH remained in a bearish zone and it broke the main $2,200 support zone to move further into a bearish zone, similar to bitcoin.

The price even declined below the $2,150 support and it settled below the 100 hourly simple moving average. There was a spike below $2,100 and the price tested $2,050. A low is formed near $2,049 and the price is now correcting losses.

It climbed above the $2,100 resistance. There was a break above the 23.6% Fib retracement level of the recent decline from the $2,406 swing high to $2,049 low. It is now testing a connecting bearish trend line with resistance near $2,150 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

An immediate support is near the $2,100 level. The first key support is near the $2,050 level. The main support is now near the $2,000 zone. If there is a downside break below the $2,000 support zone, there is a risk of a sharp decline. The next major support is near the $1,850 level.

Upsides Limited in ETH?

If Ethereum stays above the $2,050 support, it could correct higher in the near term. An initial resistance is near the $2,150 level.

The first key resistance could be $2,180. The next major resistance is near the $2,200 level and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $2,200 on the same chart. Any more gains could lead the price towards the $2,300 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently near the 50 level.

Major Support Level – $2,050

Major Resistance Level – $2,200

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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