NEW DELHI (CoinChapter.com) — Ethereum (ETH) is struggling below $2,050. It seems like the price might witness a short-term setback toward $1,800 before the bulls take over.
Ethereum Price Signals Uptrend Exhaustion
Earlier this month, Ethereum price started a steady increase above the $1,650 resistance. ETH cleared many hurdles near $1,800 and the 50-day simple moving average (blue) to enter a positive zone, like Bitcoin above $30,000.
The price even climbed above the $2,000 resistance before it faced hurdles. In the Ethereum price prediction, we discussed the importance of the $2,150 resistance. The bulls clearly struggled to push the price further higher above $2,150, initiating a short-term pullback.
Ethereum corrected lower below the $2,050 level. It even spiked below the 23.6% Fib retracement level of the key increase from the $1,521 swing low to the $2,134 high. It is now following a key contracting triangle with resistance at $2,040 on the daily chart. The current price action suggests that bullish momentum is fading.
More importantly, the SEC is again back in action with a fresh lawsuit against Kraken, alleging that the exchange operates as an unregistered national securities exchange, broker, and clearing house. The SEC also mentioned a few cryptos as securities, including ADA, AXS, ALGO, CHZ, MATIC, MANA, COTI, SOL, SAND, and a few others.
The above lawsuit sparked a few bearish moves in the cryptocurrency market. It might also impact majors like ETH in the short term. On the downside, the first key support sits at $1,950 and the triangle trend line.
If the bulls fail to protect the $1,950 support zone, Ethereum might dive toward the $1,820 support or the 50% Fib retracement level of the key increase from the $1,521 swing low to the $2,134 high.
The main uptrend support seems to be forming near the $1,800 region and the 50-day simple moving average (blue). Any more losses might start a major decline and the price could slide toward the last swing low of $1,520.
Fresh Surge in ETH?
Conversely, Ethereum could remain strong above $1,950 and attempt a fresh increase. Immediate resistance on the upside is near the triangle zone at $2,040.
A successful break above the triangle resistance could set the pace for a move toward the $2,080 level. The main breakout zone sits at $2,150. A daily close above $2,150 could open the doors for an 80% increase in ETH in the coming weeks (as discussed in the last price prediction).
Overall, the Ethereum price is showing a few bearish signs and might correct lower toward the $1,800 support zone. If there is a pullback, it could attract buyers for a fresh rally toward $2,150.
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