ETH/USDclosed at 1961.46 after placing a high of 2128.25 and a low of 1939.64. After rising for three consecutive sessions, ETH reversed its momentum and fell sharply against the US dollar to reach below the $1940 level on Wednesday. The decline in Ethereum prices on Wednesday could be attributed to the sharp slide in BITCOIN prices as it tends to drive the market prices along with itself. The BTC prices fell amid warnings that the unnecessary long positions should be closed in the market so that new gains could take place.
The analysts believed that further upside in Bitcoin price was more likely than another correction so, they leveraged the long positions. By doing so, they liquidated those positions before BTC could make a meaningful attempt at a new all-time high (ATH). According to some data, the latest price action caused about $2 billion in liquidations in just 24 hours, out of which $600 million came in a single hour alone. This decline in Bitcoin prices exerted downward pressure on Ethereum and it dropped from its key level of $2000 on Wednesday and headed away from its all-time high level.

There was no latest news related to Ethereum on Wednesday, and the coin left to follow Bitcoin’s momentum that dragged its prices below the key level of $2000. On the US dollar front, the US dollar Index (DXY) rose on Wednesday amid the release of minutes from the Federal Reserve Open Market Committee (FOMC). Fed kept the accommodative policy in place and reiterated that it would not be adjusted based merely on forecasts but will remain unchanged until employment and inflation strengthen. This raised the value of the US dollar and weighed on the ETH/USD prices on Wednesday.

Daily Technical Levels
Support Resistance
1910.18 2062.65
1859.36 2164.30
1757.71 2215.12
Pivot Point: 2011.83

The ETH/USD pair is trading with a bullish bias at 2,027 level, and it’s likely to face immediate resistance at 2,097 and a support area of 1,935 level. The MACD and RSI are crossing over 0 and 50 levels, respectively, suggesting odds of bullish trend continuation. On the higher side, the pair may head further higher until 2,078, where previously violated upward trendline may provide resistance. However, a bullish breakout of 2,078 level can lead ETH/USD towards 2,151 level. Conversely, the support holds around 1,935 levels today. Good luck!