Ethereum price declined and tested the $1,935 support level. ETH is probably forming a double-bottom and could start a nice uptrend.
- Ethereum reacted to the decline and tested the support at $1,935.
- The price is trading below $2,020 and the 100-hour simple moving average.
- There was a break below a key contracting triangle with support near $2,025 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is possibly forming a double-bottom pattern and could outperform Bitcoin.
Ethereum price revisits $1,935
After facing rejection near the $2,090 area, Ethereum price declined. ETH is trading below the $2,050 and $2,020 support levels to enter the short-term bearish zone like Bitcoin.
There was also a break below a key contracting triangle with support near $2,025 on the hourly charts of ETH/USD. However, the bulls took a stand near the $1,935 support zone. It looks like Ether is possibly forming a double-bottom pattern, while Bitcoin is forming a double-top pattern near $38,000.
Ethereum is now trading above the 23.6% Fibonacci retracement level of the downward move from high $2,092 to low $1,935. Immediate resistance is near the $2,000 area.
The first major resistance is near $2,020 or the 100-hour simple moving average. It is near the 61.8% Fibonacci retracement level of the downside move from the $2,092 high to $1,935 low. A close above the $2,020 resistance could trigger another strong rise.
Source: ETHUSD on tradingview.com
The next resistance is near $2,090, above which the price may aim to move towards $2,120 levels. Any more gains could start a wave towards the $2,200 level.
More losses in ETH?
If Ethereum fails to clear the $2,020 resistance, it could start a fresh decline. On the downside, initial support is near the $1,950 level. The next major support is $1,935.
The main support is $1,920. A break below the $1,920 support level could trigger a sustained decline. In the described case, Ether may drop towards the $1,850 support zone in the near term. Any further losses may require a drop to the $1,800 level.
hourly macd , The MACD of ETH/USD is losing momentum in the bullish zone.
hourly rsi , The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,935
Major resistance level – $2,020