The price of Ethereum, the world’s second-largest cryptocurrency by market capitalization, is currently consolidating at a pivotal point. After struggling to breach the $2,050 resistance level, Ethereum is now trading below the $2,020 mark and the 100-hourly Simple Moving Average. A crucial bearish trend line has also been identified, forming a resistance at $2,040 on the hourly chart of ETH/USD (data sourced from Kraken).
For Ethereum to chart a convincing upward trajectory, the cryptocurrency needs to break through the $2,040 and $2,100 resistance levels. This breakthrough would potentially initiate a significant price increase, but the achievement of this milestone remains uncertain.
The price of Ethereum has been experiencing a turbulent period, failing to sustain growth above the $2,100 mark and subsequently correcting some of its previous gains. This price correction mirrors the recent performance of Bitcoin, the leading cryptocurrency.
Ethereum’s price dipped below the $2,040 and $2,020 support levels, testing the $1,980 zone. A low point was recorded at $1,982 before the cryptocurrency attempted a fresh upward move, pushing past the $2,020 level and testing the 50% Fibonacci retracement level of the recent drop from the $2,098 peak to the $1,982 low.
However, Ethereum is still facing significant resistance. The digital asset seems to be struggling to surpass the $2,040 level, with further resistance at $2,050 and the 61.8% Fibonacci retracment level of the recent decline. The first significant resistance is near the $2,095 level.
If Ethereum can break through the $2,095 resistance, the price could potentially rally towards the $2,150 and even the $2,250 resistance zones or $2,320 in the near term. However, if Ethereum fails to overcome the $2,040 resistance, it could trigger another decline.
On the downside, initial support is near the $2,000 level, with the first major support at the $1,980 zone. A significant move below this level might push the price towards the $1,880 support. Further losses could send the price towards the $1,820 support level in the near term, with the next vital support at $1,750.
Looking at the technical indicators, the Hourly MACD for ETH/USD is indicating a loss of momentum in the bearish zone while the Hourly RSI is now below the 50 zone, both suggesting potential for further downside.
Overall, Ethereum is at a crossroads. The coming days will prove crucial in determining the direction of the cryptocurrency’s price.
Major Support Level – $1,980
Major Resistance Level – $2,040
