Ethereum Price Faces Uphill Task
Ethereum (ETH) is still consolidating below the $2,000 resistance. The price must settle above $2,025 to avoid a major decline in the near term.
In the past few days, we mostly saw bearish moves in Ethereum below the $2,320 support zone, like Bitcoin. The price extended losses below the $2,000 and $1,880 support levels. The bears even pushed the price below the $1,820 support zone.
The price settled below the 50-day simple moving average (blue) and retested the $1,765 zone. The recent low was formed at $1,768 and ETH is currently consolidating losses.
Ethereum is still showing many bearish signs below the $2,000 support and the 50-day simple moving average (blue). The current price action is negative and a short-term recovery could face many hurdles.
On the upside, immediate resistance is seen near the $1,920 level. The first major resistance sits near the $1,960 level. There is also a connecting bearish trend line forming with resistance at $1,960 on the daily chart.
A clear move above the trend line resistance might call for a test of the $2,000 resistance. The key pivot level could be near the $2,025 level. It coincides with the 23.6% Fib retracement level of the downward move from the $2,860 swing high to the $1,768 low.
If Ethereum bulls push the price above $2,025, it could decrease selling pressure. In the stated case, Ether price could rise toward the $2,200 resistance and test the 50-day simple moving average (blue).
The next resistance is near the $2,320 zone or the 50% Fib retracement level of the downward move from the $2,860 swing high to the $1,768 low. A convincing move above the $2,320 level could open the doors for a steady increase toward the $2,500 level.
If ETH clears the $2,500 resistance, the bulls could aim for a move toward the $2,600 resistance. Any more gains might call for a test of the $2,860 resistance zone in the coming days.
More Losses In ETH?
If Ether fails to surpass the trend line or $2,025, it could continue to move down. Immediate support on the downside is near the $1,800 level. The first major support sits near the $1,765 level. A daily close below the $1,765 level might spark heavy bearish moves in Ethereum.
In the stated case, the price could drop and test the $1,550 support. If there is a clear move below the $1,550 support, ETH price might even decline and test the $1,320 support zone in the coming days.
Overall, Ethereum price is still consolidating below $2,000 and $2,200. It must settle above $2,025 and then $2,200 to start a decent recovery wave.