Ethereum Price Bounce Looks Fragile, Another Selloff May Be Brewing

Ethereum price started a recovery wave above the $2,100 zone. ETH is now consolidating and might struggle to continue higher above the $2,150 resistance.

• Ethereum started a recovery wave from the $2,075 zone.
• The price is trading below $2,120 and the 100-hourly Simple Moving Average.
• There is a bearish trend line forming with resistance at $2,120 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh decline if it stays below the $2,150 zone.

Ethereum price remained bid above the $2,050 support zone, like Bitcoin. ETH price formed a base and started a recovery wave above the $2,065 resistance.

The price surpassed the 38.2% Fib retracement level of the downward move from the $2,197 swing high to the $2,075 swing low. The bulls even pushed the price toward $2,150 but the bears remained active. Besides, there is a bearish trend line forming with resistance at $2,120 on the hourly chart of ETH/USD.

Ethereum price is now trading below $2,120 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 $2,120 level. The first key resistance is near the $2,150 level or the 61.8% Fib retracement level of the downward move from the $2,197 swing high to the $2,075 swing low.

The next major resistance is near the $2,200 level. A clear move above the $2,200 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 $2,300 resistance zone or even $2,315 in the near term.

If Ethereum fails to clear the $2,150 resistance, it could start a fresh decline. Initial support on the downside is near the $2,085 level. The first major support sits near the $2,075 zone.

A clear move below the $2,075 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 – $2,050

Major Resistance Level – $2,150