Key Takeaways:
- Ether price started a major decline from the $2,000 resistance zone.
- ETH/USD traded below a key bullish trend line at $1,820 on the daily chart.
- It is now trading near a crucial support at $1,550 and the 50-day simple moving average (blue).
Ethereum’s ETH failed to clear the $2,000 barrier and declined sharply. It must stay above $1,400 to start another increase in the near term.
Ethereum (ETH) Price Starts Major Decline
Earlier this month, ethereum climbed above the $1,550 resistance level against the US Dollar. The ETH/USD pair even cleared the $1,800 level and the 50-day simple moving average (blue).
There was a clear move above the $1,920 resistance, but the bears appeared near the $2,000 zone. The price traded as high as $2,019 and recently there was a major decline. The bears gained strength for a push below the $1,900 and $1,800 levels.
Etheruem’s daily price chart | Source: ETHUSD on TradingView.com
There was a clear move below the 23.6% Fib retracement level of the upward move from the $1,005 swing low to $2,019 high. Besides, ether price traded below a key bullish trend line at $1,820 on the daily chart.
It is now testing a crucial support near the $1,550 level and the 50-day simple moving average (blue). The 50% Fib retracement level of the upward move from the $1,005 swing low to $2,019 high is also positioned near the $1,520 level to provide support.
The next major support is near the $1,400 zone. A close below the $1,400 level might spark a major bearish wave. In the stated case, the price may perhaps decline towards the $1,200 level.
Any more losses below $1,220 and $1,200 could push ether price back into a downtrend. In the stated case, it could revisit the $1,000 support. On the upside, an immediate resistance is near the $1,600 level. The first major barrier is near the $1,750 level.
A clear move above the $1,750 resistance could send the price towards the $1,880 resistance. The next major resistance is near the $2,000 level. Any more gains might open the doors for a move towards the $2,175 resistance.
Overall, ether price is still trading near a crucial support at $1,500. If the bulls fail to protect the $1,500 and $1,400 support levels, there is a risk of a sharp decline. Conversely, there might be a fresh increase above $1,600 and $1,700 in the coming days.
