Key Takeaways:
- Ether price is facing a major hurdle near the $1,910 and $1,935 resistance levels.
- ETH/USD is following a major declining channel with resistance near $1,885 on the 4-hour chart.
- The price could restart increase above $1,900 or correct further lower toward $1,780.
Ethereum Price Forms Bullish Technical Pattern | Photo by shutter_speed on Unsplash
New Delhi(CoinChapter.com): Ethereum’s ETH is correcting gains below $1,900. The price is following a bullish flag but ETH seems to be losing momentum below $1,880.
Ethereum Price (ETH) Starts Correction
This past week, we saw a strong increase in Ethereum above the $1,800 level against the US dollar. The ETH/USD pair was able to clear the $1,880 resistance level.
It even spiked above the $1,920 level but there was no upside continuation. A high is formed near $1,938 and the price is now correcting lower, similar to Bitcoin. There was a break below the $1,880 support level and the 50 Simple moving average (4 hours, blue).
Ethereum price 4-hours price chart | Source: ETH/USD on TradingView.com
There was a move below the 23.6% Fib retracement level of the upward move from the $1,628 swing low to the $1,938 high. The bulls are now active above the $1,800 level.
It seems like ETH is following a major declining channel with resistance near $1,885 on the 4-hour chart. It is rising and approaching the 50 Simple moving average (4 hours, blue). The first major resistance is near the channel zone at $1,885.
The next major resistance is near the $1,910 level. The main resistance sits near the $1,935 level. A close above the $1,935 resistance might start a fresh rally. In the stated case, Ethereum could rise toward the $2,000 resistance. The next key resistance is near the $2,150 zone. Any more gains could send ETH price toward the $2,250 level.
More Losses?
Conversely, Ethereum price might struggle to clear the bullish flag resistance at $1,885. Immediate support is seen near the $1,820 level.
The next major support is near the $1,780 level or the 50% Fib retracement level of the upward move from the $1,628 swing low to the $1,938 high. The main support sits at $1,745. If there is a move below $1,745, there is a risk of an extended decline.
In this scenario, the price may perhaps test the $1,700 support. Any more losses below $1,700 could send the price toward the $1,625 zone.
Overall, Ether’s price is correcting gains below the $1,900 level. If the price fails to clear the $1,900 resistance, it could drop toward $1,780. On the other hand, it could rise toward $2,000.
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