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Ethereum’s Downtrend Resistance Holds Strong Despite Price Gains

source-logo  news.coincu.com 07 June 2023 04:38, UTC
This trend has been similar to that of Bitcoin, which has also seen a recent increase in price. Ethereum’s current price is around $1,850 and is trading above the 100-hourly Simple Moving Average.

In the hourly chart of ETH/USD, there was a clear move above the $1,840 and $1,850 resistance levels. Furthermore, a key bearish trend line with resistance near $1,865 was broken, indicating a potential upward trend in the near future. The price then formed a high near $1,898 and is currently consolidating gains.

Looking ahead, immediate resistance is near the $1,900 zone, with the next major resistance near the $1,920 level. This level has been tested multiple times in the past, making it a multi-touch zone. If Ethereum makes a proper move above the $1,900 and $1,920 resistance levels, it might experience an upward trend, possibly leading to a price of $1,950. The next resistance sits near $2,000, above which Ethereum could rise further to $2,040. If the price gains continue beyond the $2,040 resistance zone, it might reach the $2,120 resistance level.

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 further losses may perhaps send the price toward the $1,775 level or even $1,740 in the coming sessions.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.