As the cryptocurrency market remains volatile, Ethereum investors and traders closely monitor its price movements for potential opportunities. This article provides insights into the recent developments surrounding Ethereum’s price, emphasizing key support and resistance levels that are crucial for understanding its future trajectory.
Failed Breakout Attempt
Ethereum’s price recently made an attempt to break above the $1,975 resistance zone. The intention was to rally towards the significant psychological level of $2,000. However, the bulls couldn’t gather enough momentum, leading to a correction in price. Subsequently, Ethereum’s value dropped below the $1,950 support level.
Support and Resistance Levels
The $1,950 level is a critical barrier for Ethereum’s upward movement. Currently, a short-term declining channel is forming with resistance near $1,950 on the hourly chart of ETH/USD. To resume its upward trend, Ethereum needs to surpass this resistance level. The subsequent major resistance lies near $1,975, followed by the $2,000 level.
On the downside, Ethereum found support near the $1,930 level, which also aligns with the 100-hourly Simple Moving Average (SMA). The initial support stands at $1,910, while the next major support level rests around $1,900.
Current Trading Scenario
Presently, Ethereum is trading above $1,930 and the 100-hourly SMA, indicating a moderately bullish sentiment. However, the price needs to overcome the immediate resistance at $1,950 to regain strong bullish momentum. A clear move above the $1,975 resistance level could potentially push Ethereum toward the $2,000 mark.
Potential Upside Targets
If Ethereum manages to break above the $1,975 resistance, it opens doors for further upside potential. The next resistance level is around $2,050, followed by a significant hurdle near $2,120. Should the buying pressure persist, Ethereum could aim for the $2,200 resistance level.
Potential Downside Risks
In case Ethereum fails to clear the $1,950 resistance, it may experience a downside movement. The initial support is nearly $1,930, reinforced by the 100-hourly SMA. However, if the price breaches this support level, it could drop toward the $1,910 support. Further losses may lead Ethereum toward the $1,900 level and potentially even the $1,870 support level.
Conclusion
Ethereum’s recent price action showcased an attempt to break above the $1,975 resistance zone, but the bullish momentum couldn’t sustain the rally toward $2,000. The cryptocurrency currently faces resistance near $1,950, and the bulls need to regain control to pave the way for further upward movement. On the downside, Ethereum finds initial support at $1,930, followed by $1,910 and $1,900 levels. Traders and investors closely monitor these levels to gauge Ethereum’s future price trajectory.
