Ethereum Price Struggles—Is Another Breakdown on The Horizon?

Ethereum price remained supported above the $1,980 level. ETH is now consolidating and remains at risk of a downside break.

• Ethereum struggled to continue higher above the $2,050 resistance level.
• The price is trading below $2,020 and the 100-hourly Simple Moving Average.
• There is a connecting bearish trend line forming with resistance at $2,040 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must clear the $2,040 and $2,100 resistance levels to start a decent increase.

Ethereum Price Dips Again

Ethereum price failed to continue higher above $2,100 and corrected some gains, like Bitcoin. ETH declined below the $2,040 and $2,020 support levels.

It tested the $1,980 zone. A low was formed at $1,982 and the price recently attempted a fresh upward move. There was a move above the $2,020 level. The price tested the 50% Fib retracement level of the recent decline from the $2,098 swing high to the $1,982 low.

Ethereum price is now trading below $2,020 and the 100-hourly Simple Moving Average. There is also a connecting bearish trend line forming with resistance at $2,040 on the hourly chart of ETH/USD.

On the upside, the price seems to be facing hurdles near the $2,040 level. The next key resistance is near the $2,050 level and the 61.8% Fib retracement level of the recent decline from the $2,098 swing high to the $1,982 low. The first major resistance is near the $2,095 level.

A clear move above the $2,095 resistance might send the price toward the $2,150 resistance. An upside break above the $2,150 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,250 resistance zone or even $2,320 in the near term.

Downside Break In ETH?

If Ethereum fails to clear the $2,040 resistance, it could start another decline. Initial support on the downside is near the $2,000 level. The first major support sits near the $1,980 zone.

A clear move below the $1,980 support might push the price toward the $1,880 support. Any more losses might send the price toward the $1,820 support level in the near term. The next key support sits at $1,750.

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 – $1,980

Major Resistance Level – $2,040

Source