Ethereum dropped heavily and tested the $ 2,000 support zone. ETH price is trying to recover and needs to clear $ 2,800 for a steady rise. According to the technical analysis of NewsBTC’s Aayush Jindal:
- Ethereum dropped over 40% in one week and even tested the $ 2,000 support zone.
- The price is currently trading well below the $ 3,000 level and the 100 hourly simple moving average.
- There is a large contracting triangle formation with resistance near $ 2,650 on the hourly chart of ETH / USD (according to Kraken data).
- The pair needs to clear $ 2,650 and $ 2,800 to return to the positive zone in the near term.
Ethereum (ETH) Price Shows Recovery Signals
Ethereum remained in a major downtrend well above the $ 3,000 pivot level. ETH dropped over 40% within a few days and even broke the $ 2,500 support zone similar to Bitcoin.
The bears managed to clear the $ 2,200 support zone. It also fell below $ 2,000 and the price formed a low level near $ 1,850. Ethereum is now recovering and trading above the $ 2,200 level. However, it is well below the $ 3,000 level and the 100 hourly simple moving average.
There is also a large contracting triangle formation with resistance near $ 2,650 on the hourly chart of ETH / USD. Formation resistance is near the 61.8% Fib retracement level of the last drop from $ 2,847 to $ 2,149. A successful break above the $ 2,650 and $ 2,800 levels could open the doors for a steady recovery in the coming sessions. The next major resistance is near the $ 3,125 level.
Will Ethereum (ETH) Fall More?
If Ethereum cannot continue above the $ 2,650 and $ 2,800 resistance levels, it could initiate another decline. Initial support on the downside is near the $ 2,300 level and the pattern trend line.
The first major support is near the $ 2,200 level. The main support is currently forming near the $ 2,000 level. If there is a downside break below the $ 2,000 zone, the price could drop towards the $ 1,600 support.
- Hourly MACD – The MACD for ETH / USD is slowly entering the bullish zone.
- Hourly RSI – The RSI for ETH / USD is currently close to the 40 level.
- Major Support Level – $ 2,000
- Major Resistance Level – $ 2,800