Ethereum Price Regains Strength But Key Downtrend Resistance Intact

2023-06-07 03:30:16

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

Ethereum is showing positive signs above the $1,860 level.
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 feed via Kraken).
The pair could still struggle to clear the $1,920 resistance zone.

Ethereum Price Trims Losses

Ethereum’s price found support near the $1,775 zone after a major decline. ETH formed a base and started a fresh increase above the $1,800 resistance zone, similar to Bitcoin.

There was a clear move above the $1,840 and $1,850 resistance levels. Besides, there was a break above a key bearish trend line with resistance near $1,865 on the hourly chart of ETH/USD. A high is formed near $1,898 and the price is now 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 increase from the $1,777 swing low to the $1,898 high.

Source: ETHUSD on TradingView.com

Immediate resistance is near the $1,900 zone. The next major resistance is near the $1,920 level (a multi-touch zone). A proper move above the $1,900 and $1,920 resistance levels might send Ether toward $1,950. The next resistance sits near $2,000, above which Ethereum could rise toward $2,040. Any more gains above the $2,040 resistance zone might send the price toward the $2,120 resistance.

Fresh Decline in ETH?

If Ethereum fails to clear the $1,900 resistance, it could start another decline. Initial support on the downside is near the $1,860 level and the 100-hourly Simple Moving Average.

The next major support is near the $1,840 zone or the 50% Fib retracement level of the recent increase from the $1,777 swing low to the $1,898 high. If there is a break below the $1,840 support, the price could decline toward the $1,800 support. Any more losses may perhaps send the price toward the $1,775 level or even $1,740 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

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