Ethereum Price Attempts Recovery—Key Levels to Watch After $2,000 Drop

Ethereum price started a fresh decline below the $2,350 zone. ETH is now correcting some losses from the $2,000 support and might face hurdles.

• Ethereum started a fresh decline below the $2,320 support zone.
• The price is trading below $2,220 and the 100-hourly Simple Moving Average.
• There was a break above a connecting bearish trend line with resistance at $2,080 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must clear the $2,230 and $2,275 resistance levels to start a decent increase.

Ethereum Price Finds Support At $2,000

Ethereum price started a fresh decline from the $2,550 resistance zone, like Bitcoin. ETH gained bearish momentum below the $2,420 and $2,350 support levels.

There was a clear move below the $2,220 support zone and the 100-hourly Simple Moving Average. The price even tested the $2,000 zone. A low was formed at $2,003 and the price is now attempting to recover above the 23.6% Fib retracement level of the downward move from the $2,550 swing high to the $2,003 low.

There was a break above a connecting bearish trend line with resistance at $2,080 on the hourly chart of ETH/USD. Ethereum price is now trading below $2,220 and the 100-hourly Simple Moving Average.

On the upside, the price seems to be facing hurdles near the $2,220 level. The first major resistance is near the $2,275 level and the 50% Fib retracement level of the downward move from the $2,550 swing high to the $2,003 low.

A clear move above the $2,275 resistance might send the price toward the $2,350 resistance. An upside break above the $2,350 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,450 resistance zone or even $2,500 in the near term.

Another Drop In ETH?

If Ethereum fails to clear the $2,275 resistance, it could start another decline. Initial support on the downside is near the $2,130 level. The first major support sits near the $2,080 zone.

A clear move below the $2,080 support might push the price toward the $2,020 support. Any more losses might send the price toward the $2,000 support level in the near term. The next key support sits at $1,880.

Technical Indicators

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

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

Major Support Level – $2,080

Major Resistance Level – $2,275