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Ethereum declined heavily and it even tested the $2,000 support zone against the US Dollar. ETH price is attempting a recovery and it must clear $2,800 for a steady rise.

  • Ethereum is down over 40% in a week and it even tested the $2,000 support zone.
  • The price is now well below the $3,000 level and the 100 hourly simple moving average.
  • There is a major contracting triangle forming with resistance near $2,650 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must clear $2,650 and $2,800 to move back into a positive zone in the near term.

Ethereum Price Shows Recovery Signs

Ethereum remained in a major downtrend from well above the $3,000 pivot level. ETH declined over 40% in a few days and it even broke the $2,500 support zone, similar to bitcoin.

The bears were able to clear the $2,200 support zone. There was also a spike below $2,000 and the price formed a swing low near $1,850. Ether is now recovering and it is trading above the $2,200 level. However, it is well below the $3,000 level and the 100 hourly simple moving average.

The recent swing low was formed near $2,149. An immediate resistance is near the $2,500 level. It is near the 50% Fib retracement level of the recent drop from the $2,847 swing high to $2,149 low.

Source: ETHUSD on TradingView.com

There is also a major contracting triangle forming with resistance near $2,650 on the hourly chart of ETH/USD. The triangle resistance is close to the 61.8% Fib retracement level of the recent drop from the $2,847 swing high to $2,149 low. A successful break above the $2,650 and $2,800 levels could open the doors for a steady recovery in the coming sessions. The next major resistance is near the $3,125 level.

Fresh Decline in ETH?

If Ethereum fails to continue higher above the $2,650 and $2,800 resistance levels, it could start another decline. An initial support on the downside is near the $2,300 level and the triangle trend line.

The first key support is near the $2,200 level. The main support is now forming near the $2,000 level. If there is a downside break below the $2,000 zone, the price could decline towards the $1,600 support.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving into the bullish zone.

Hourly RSIThe RSI for ETH/USD is now close to the 40 level.

Major Support Level – $2,000

Major Resistance Level – $2,800

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

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