Ethereum Price Faces Downside Risk, Bears Prepare for Fresh Move

Ethereum price started a recovery wave above the $2,120 zone. $ETH is now consolidating above $2,140 and is struggling to clear the $2,200 resistance.

• Ethereum started a recovery wave above the $2,150 zone.
• The price is trading above $2,120 and the 100-hourly Simple Moving Average.
• There is a new bearish trend line with forming resistance at $2,175 on the hourly chart of $ETH/USD (data feed via Kraken).
• The pair could start a fresh decline if it stays below the $2,205 resistance.

Ethereum Price Faces Resistance

Ethereum price managed to stay above $2,050 and started a recovery wave, like Bitcoin. $ETH price was able to climb above the $2,080 and $2,120 resistance levels.

The price cleared the 38.2% Fib retracement level of the downward move from the $2,385 swing high to the $2,025 low. However, the bears seem to be active below the $2,200 resistance. There is also a new bearish trend line with forming resistance at $2,175 on the hourly chart of $ETH/USD.

Ethereum price is now trading above $2,140 and the 100-hourly Simple Moving Average. If the bulls remain in action above $2,100, the price could attempt another increase. Immediate resistance is seen near the $2,175 level and the trend line.

The first key resistance is near the $2,205 level or the 50% Fib retracement level of the downward move from the $2,385 swing high to the $2,025 low.

The next major resistance is near the $2,250 level. A clear move above the $2,250 resistance might send the price toward the $2,300 resistance. An upside break above the $2,300 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,345 resistance zone or even $2,365 in the near term.

Another Drop In $ETH？

If Ethereum fails to clear the $2,175 resistance, it could start a fresh decline. Initial support on the downside is near the $2,120 level. The first major support sits near the $2,100 zone.

A clear move below the $2,100 support might push the price toward the $2,065 support. Any more losses might send the price toward the $2,020 region. The main support could be $2,000.

Technical Indicators

Hourly MACD– The MACD for $ETH/USD is losing momentum in the bullish zone.

Hourly RSI– The RSI for $ETH/USD is now below the 50 zone.

Major Support Level – $2,065

Major Resistance Level – $2,175