Ethereum Price Holds Support at $1,850 as It Aims for Recovery Amid Market Correction

The price of Ethereum experienced a correction, falling below $1,880 against the US Dollar. However, ETH is maintaining support at $1,850 and could potentially rise again.

Despite Ethereum’s failure to accelerate past the $1,925 resistance area, its downward correction was limited compared to Bitcoin. The cryptocurrency fell below the $1,880 support level, but found support at $1,850 and the 100-hourly Simple Moving Average. The price reached a low of around $1,854 and is now consolidating its losses.

Ethereum is gradually recovering and currently trading above $1,870. It managed to surpass the 23.6% Fibonacci retracement level of the recent drop from the $1,925 high to the $1,854 low. Now, ETH is trading above both the $1,850 support and the 100-hourly Simple Moving Average.

However, the cryptocurrency is encountering resistance near $1,880, with a connecting bearish trend line present at this level on the ETH/USD hourly chart. The next significant resistance lies around the $1,900 mark, aligning with the 61.8% Fibonacci retracement level of the recent drop.

If Ethereum can successfully move above the $1,900 resistance area, it might aim for the $1,925 resistance level. Beyond that, the next major resistance could be $2,000, with further gains potentially leading to a test of the $2,120 resistance level.

On the other hand, if Ethereum is unable to surpass the $1,880 resistance, its price could continue to decline. The initial downside support is around the $1,860 mark, followed by the $1,850 support area. If Ethereum’s price falls below this level, it could drop towards $1,800, with the next key support at $1,770. Should the price break below $1,770, Ethereum may continue its decline towards $1,700.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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