Ethereum Price Drops Near $2,020, Downside Pressure Continues to Build

Ethereum price failed to clear the $2,200 zone and declined. ETH is now consolidating above $2,020 and might struggle to start a recovery wave.

• Ethereum started a fresh decline from the $2,200 zone.
• The price is trading below $2,120 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $2,135 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh decline if it stays below the $2,120 resistance.

Ethereum price failed to stay above $2,150 and started a fresh decline, like Bitcoin. ETH price dipped below $2,120 and $2,080 to enter a bearish zone.

The bears even pushed the price toward $2,020. A low was formed at $2,032, and the price is now consolidating losses near the 23.6% Fib retracement level of the downward move from the $2,199 swing high to the $2,032 low. There is also a key bearish trend line forming with resistance at $2,135 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 $2,020, the price could attempt another increase. Immediate resistance is seen near the $2,100 level.

The first key resistance is near the $2,120 level or the 50% Fib retracement level of the downward move from the $2,199 swing high to the $2,032 low. The next major resistance is near the $2,135 level and the trend line. A clear move above the $2,135 resistance might send the price toward the $2,200 resistance. An upside break above the $2,200 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,245 resistance zone or even $2,320 in the near term.

If Ethereum fails to clear the $2,135 resistance, it could start a fresh decline. Initial support on the downside is near the $2,050 level. The first major support sits near the $2,020 zone.

A clear move below the $2,020 support might push the price toward the $1,980 support. Any more losses might send the price toward the $1,950 region. The main support could be $1,880.

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 – $2,020

Major Resistance Level – $2,135