Ethereum (ETH) faces Major Resistance at US$2,200 Level: Can anything Trigger Strong Recovery?

Ethereum (ETH) failed to retain the US$2,000 support level. The decline in ETH price was extended and even broke below the US$1,800 level. The downturn continued and settled below the 100 hourly SMA (Simple Moving Average).

The ETH/USD pair traded as low as US$1,731 and started to move upwards again recently and successfully moved above the resistance levels at US$1,800 and US$1,850. The most important technical aspect here is that the Ethereum price broke above the 50% Fibonacci retracement level of the recent downward swing from a high at US$2,495 to a low at US$1,731.

However, currently, the ETH price against the US Dollar is facing a strong resistance near the level at US$2,200. On the hourly chart of ETH/USD, a major bearish trend line has formed with the resistance near the US$2,200 level.

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The trend line is close to the 61.8% Fibonacci retracement level of the recent downward swing from a high at US$2,495 to a low at US$1,731. If the Ethereum bulls are capable of clearly breaking above the trend line resistance, a strong move above the US$2,200 level can be seen. If this upward movement takes place then the next major resistances are located near the US$2,400 and the 100 hourly SMA (simple moving average). Any gains above this level will take the ETH/USD price towards the resistance level at US$2,800.

In case, the ETH price fails to hold on to the US$2,000 level, then the major support levels will be near the US$1,800, US$1,700, US$1,500, and US$1,200 levels.

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