Ethereum Price Buying Pressure Softens, Traders Turn Increasingly Cautious

Ethereum price started a downside correction from $2,120. ETH must clear the $2,110 and $2,120 resistance levels to continue higher.

• Ethereum started a downside correction below the $2,110 zone.
• The price is trading below $2,095 and the 100-hourly Simple Moving Average.
• There was a break below a bullish trend line with support at $2,105 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move down if it stays below the $2,120 zone.

Ethereum Price Dips Below Support

Ethereum price failed to stay above the $2,120 zone and extended its decline, like Bitcoin. ETH price gained pace for a move below the $2,110 and $2,100 levels.

The bears pushed the price below the 38.2% Fib retracement level of the upward move from the $2,000 swing low to the $2,148 high. Besides, there was a break below a bullish trend line with support at $2,105 on the hourly chart of ETH/USD.

However, the bulls were active near the $2,080 level. Ethereum price is now trading below $2,100 and the 100-hourly Simple Moving Average. If the bulls remain in action above $2,075, the price could attempt another increase.

Immediate resistance is seen near the $2,110 level. The first key resistance is near the $2,120 level. The next major resistance is near the $2,150 level. A clear move above the $2,150 resistance might send the price toward the $2,220 resistance. An upside break above the $2,220 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,250 resistance zone or even $2,320 in the near term.

Downside Continuation In ETH?

If Ethereum fails to clear the $2,120 resistance, it could start a fresh decline. Initial support on the downside is near the $2,075 level. The first major support sits near the $2,060 zone or the 61.8% Fib retracement level of the upward move from the $2,000 swing low to the $2,148 high.

A clear move below the $2,060 support might push the price toward the $2,020 support. Any more losses might send the price toward the $2,000 region. The main support could be $1,940.

Technical Indicators

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

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

Major Support Level – $2,060

Major Resistance Level – $2,150