Ethereum Price Retreats—Will It Find Support or Drop Further?

Ethereum price failed to clear the $2,320 resistance and trimmed gains. ETH is now consolidating and facing hurdles near the $2,220 resistance.

• Ethereum started a fresh upward move above the $2,120 support zone.
• The price is trading below $2,220 and the 100-hourly Simple Moving Average.
• There was a break below a key rising channel with support at $2,220 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must clear the $2,220 and $2,320 resistance levels to start a decent increase.

Ethereum price started a decent increase from the $2,000 zone, like Bitcoin. ETH climbed above the $2,120 and $2,200 resistance levels. However, the bears were active near $2,320 and pushed the price back below $2,220.

There was a break below a key rising channel with support at $2,220 on the hourly chart of ETH/USD. A low was formed at $2,103 and the price is now attempting a recovery wave. There was a move above the $2,120 and $2,150 resistance levels.

It cleared the 23.6% Fib retracement level of the downward move from the $2,319 swing high to the $2,103 low. Ethereum price is now trading below $2,220 and the 100-hourly Simple Moving Average.

On the upside, the price seems to be facing hurdles near the $2,220 level. It is close to the 50% Fib retracement level of the downward move from the $2,319 swing high to the $2,103 low. The next key resistance is near the $2,275 level.

The first major resistance is near the $2,320 level. A clear move above the $2,320 resistance might send the price toward the $2,420 resistance. An upside break above the $2,420 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,500 resistance zone or even $2,550 in the near term.

If Ethereum fails to clear the $2,220 resistance, it could start another decline. Initial support on the downside is near the $2,100 level. The first major support sits near the $2,050 zone.

A clear move below the $2,050 support might push the price toward the $2,000 support. Any more losses might send the price toward the $1,880 support level in the near term. The next key support sits at $1,740.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

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

Major Support Level – $2,100

Major Resistance Level – $2,220