Ethereum Price Struggles Near Highs, Reversal Risk Rising

Ethereum is in a recovery phase above the $2,020 level, yet it is having a tough time breaking through the $2,080 barrier, indicating a heightened risk of another decline in the near future.

Key Takeaways

Ethereum has begun to recover, surpassing the $2,020 level.
The current price remains above $2,020 and the 100-hour Simple Moving Average.
An emerging declining channel shows support around $2,000 for ETH/USD.
The price could face further decline if it remains below the $2,080 resistance level.

Ethereum Price Sinks To $2,800

Ethereum Price Faces Important Resistance

The price of Ethereum has extended its recovery after moving past the $1,965 mark, similar to Bitcoin's performance. It successfully broke through the $2,000 resistance zone, with bullish momentum pushing it above the 50% Fibonacci retracement level from the recent downward trend that hit a high of $2,200 and a low of $1,912. Although the price surged above $2,050, selling pressure emerged near the $2,090 mark, leading to a correction back under $2,050.

Currently, Ethereum trades above the $2,000 threshold and the 100-hour Simple Moving Average. A declining channel is also visible on the hourly chart for ETH/USD, indicating support exists at the $2,000 level. If buyers can maintain their positions above $2,000, the price may attempt another rally. The immediate resistance is located around the $2,055 mark, while the first significant resistance level is near $2,080, which corresponds to the 61.8% Fibonacci retracement of the recent decline.

Ethereum Price
Source: ETHUSD on TradingView.com

The next critical resistance level lies around $2,135. A sustained movement above this threshold may push Ethereum’s price toward the $2,150 mark. An additional breakthrough over the $2,150 level could lead to further upward movement in the following days, possibly reaching toward the $2,200 resistance zone or even $2,220 in the short term.

Risk of Downside Continuation for ETH?

Should Ethereum fail to surpass the $2,050 resistance, it may initiate a new decline. The initial support is found near the $2,000 level, with the first significant support located around $1,980. If there is a decisive movement below the $1,980 support, Ethereum's price could spiral toward the $1,910 region. Additional losses may extend down to the $1,880 area, with the crucial support level set at $1,840.

Technical Indicators

Hourly MACD: The MACD for ETH/USD shows an increase in bearish momentum.
Hourly RSI: The RSI for ETH/USD has now fallen below the 50 level.
Major Support Level: $1,980
Major Resistance Level: $2,080