21.March 2023

TA: Ethereum Consolidates Below $2K: What Could Trigger A Sharp Decline?

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Ethereum started a downside correction from the $2,000 resistance against the US Dollar. ETH is consolidating and might decline further towards $1,810.

Ethereum made a couple of attempts to gain strength above the $2,000 resistance zone. However, ETH failed to extend gains and started a downside correction below the $1,950 level.

There was a clear move below the $1,920 level and the 100 hourly simple moving average. Besides, there was a break below a connecting bullish trend line with support near $1,925 on the hourly chart of ETH/USD. Ether price even declined below the $1,900 level.

A low is formed near $1,862 and the price is now consolidating losses. It is now trading below $1,950 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the $1,900 level. It is near the 23.6% Fib retracement level of the recent decline from the $2,030 swing high to $1,862 low. The first major resistance is near the $1,945 and $1,950 levels.

The 50% Fib retracement level of the recent decline from the $2,030 swing high to $1,862 low is also near the $1,950 level to act as key resistance. A clear move above the $1,950 level could start a steady increase to $2,000. If there are more upsides, the price may perhaps rise towards the $2,080 resistance zone in the near term.

If ethereum fails to rise above the $1,950 resistance, it could continue to move down. An initial support on the downside is near the $1,862 zone.

The next major support is near $1,850, below which there is a risk of a move towards the $1,810 level. If the bears remain in action, the price could even decline towards the $1,720 level.

Technical Indicators

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

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

Major Support Level – $1,860

Major Resistance Level – $1,950

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