Ethereum Price Pulls Back, Approaches Important Support Area

Ethereum's price initially surged, reaching as high as $2,200. However, it is now correcting its gains and may continue to decrease if it trades below the $2,030 level.

Key Takeaways

Ethereum has entered a downward correction after surpassing the $2,120 mark.
The price remains above $2,065 and the 100-hourly Simple Moving Average.
A vital bullish trend line is forming, providing support at $2,030 on the hourly ETH/USD chart.
The price could face further declines if it does not hold above the $2,135 resistance level.

Ethereum Price Pulls Back

Ethereum Price Begins Downward Correction

Ethereum's price recently began a new increase past the $2,065 threshold, similar to Bitcoin’s recent performance. The ETH price surged above the resistances of $2,120 and $2,150, even reaching a high of $2,200 before initiating a downward correction. The price fell below the $2,120 mark and tested the 50% Fibonacci retracement level from the rise between the swing low of $1,929 and the peak at $2,200.

Currently, Ethereum trades above $2,065 and remains above the 100-hourly Simple Moving Average. Additionally, a key bullish trend line is forming with support located at $2,030 on the hourly ETH/USD chart.

Ethereum Price Source: ETHUSD on TradingView.com

If the bulls manage to maintain their momentum above $2,030, there is potential for another upward movement. The immediate resistance is near the $2,100 level, followed by the first key resistance at $2,135. The next major resistance level appears close to $2,150. A clear breakout above the $2,150 resistance could drive the price toward the $2,200 level. Should the price cross above that threshold, Ethereum might see further gains, potentially targeting the $2,250 resistance zone or even reaching $2,320 shortly thereafter.

Potential for More Losses in Ethereum?

Should Ethereum fail to overcome the $2,135 resistance, it might commence a new decline. The initial support to watch on the downside is around the $2,065 level, with the first significant support close to $2,030, aligning with the trend line and the 61.8% Fibonacci retracement level of the price movement from $1,929 to $2,200.

A decisive drop below the $2,030 support could cause the price to fall toward the $2,000 support level. Further losses might push the price down toward the $1,965 region, with the primary support positioned at $1,920.

Technical Indicators Summary

Hourly MACD: The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI: The RSI indicator for ETH/USD is currently below the 50 threshold.
Major Support Level: $2,030
Major Resistance Level: $2,135