Ethereum extended the decline and tested the $1,920 support against the US Dollar. ETH is surging and could revisit the key $2,085 resistance zone.
Ethereum was flat above the key $1,920 support zone. The price is now trading above $2,000 and the 100 hourly simple moving average. There was a break above a major downtrend line with resistance near $1,980 on the hourly chart of ETH/USD (data feed via Kraken). The pair could go even higher, but the $2085 zone presents a major hurdle.
Ethereum Price Rebounds Above $2K
Ethereum extended the decline after breaking the $1,950 support and the 100 hourly simple moving average. However, the bulls held firm near the $1920 support.
A low was formed near $1,911 and the price started a recovery wave. There was a clear move above the $1,950 and $1,960 resistance levels. Ether price rose above the 50% Fib retracement level of the downward move from the $2,083 high to $1,911 low.
Furthermore, there was a break above a major downtrend line with resistance near $1,980 on the hourly chart of ETH/USD. Ether price is now trading above $2,000 and the 100 hourly simple moving average.
The price is now facing resistance near the $2,020 level. It is near the 61.8% Fib retracement level of the downward move from the $2,083 high to $1,911 low. The next major resistance is near the $2,040 level. Major resistance is now forming near the $2,085 level. A close above the $2,085 level could open the doors for a steady rise.
Source: ETHUSD on TradingView.com
In the given case, the price of ether could rally towards the $2,200 resistance. Any further gains could perhaps send it towards the key $2,250 resistance zone.
New drop in ETH?
If ethereum fails to recover above the $2400 resistance, a new drop could start. An initial support on the downside is near the $1,995 zone and the 100 hourly SMA.
The next big support is near the $1,970 level. A break below the $1970 level might require another test of the $1920 major support. Any further losses can perhaps clear the way for a sharp drop to $1,800.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level: $1,970
Major resistance level: $2,085
This post Ethereum forms a bullish pattern, but this level is crucial
was published first on https://www.newsbtc.com/analysis/eth/ethereum-forms-bullish-pattern-2k/