Ethereum price recovered lost ground and traded above $1,860 against the US Dollar. ETH must surpass $1,920 to start a strong increase in the near term.

  • Ethereum is showing positive signs above $1,860.

  • The price is trading above $1,850 and the 100 hourly simple moving average.

  • There was a break above a key bearish trend line with resistance near $1,865 on the hourly chart of ETH/USD (data source from Kraken).

  • The pair might still struggle to clear the $1,920 resistance area.

Ethereum Price Pares Losses

Ethereum price found support near the $1,775 area after a sharp decline. ETH formed a base and started a fresh increase above the $1,800 resistance area, similar to bitcoin.

There was a clear move above the $1,840 and $1,850 resistance levels. Moreover, there was a break above a key bearish trend line with resistance near $1,865 on the hourly chart of ETH/USD. A high was formed near $1,898 and the price is currently consolidating gains.

Ether is now trading above $1,850 and the 100 hourly simple moving average. It is also above the 23.6% Fib retracement level of the recent rise from the $1,777 swing low to $1,898 high.

The immediate resistance is near the $1,900 area. The next major resistance is near the $1,920 area (multi-touch area). A proper break above the $1,900 and $1,920 resistance levels could push Ether towards $1,950. The next resistance is near the $2,000 level, above which Ethereum could rise to $2,040. Any gains above the $2,040 resistance could push the price towards the $2,120 resistance level.

A new drop for ETH?

If Ethereum fails to clear the $1,900 resistance, it could start another decline. An initial support on the downside is near $1,860 and the 100 hourly simple moving average.

The next major support is near the $1,840 area or the 50% Fib retracement level of the recent rise from the $1,777 swing low to $1,898 high. If the $1,840 support is broken, the price could decline towards the $1,800 support. Any more losses could push the price towards the $1,775 or even $1,740 levels in the coming sessions.

Technical indicators

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

Hourly RSI – The RSI for ETH/USD is above the 50 level.

Major Support Level – $1,840

Major Resistance Level – $1,920