Bearish Bait? Ethereum (ETH) Recovery May Set Stage for a Sneaky Sell-Off

Ethereum (ETH) found support near the $1,380 zone. The price is now consolidating and might face heavy resistance at $1,750 and $1,950.

Ethereum Price Struggle Continues

In the past few days, we mostly saw bearish moves in Ethereum below the $2,000 pivot zone, like Bitcoin. The price declined further below the $1,880 and $1,650 support levels. Finally, the price dipped below the $1,500 support before the bulls appeared.

A low was formed at $1,385 and the price settled well below the 50-day simple moving average (blue). ETH is now consolidating losses and attempting a short-term recovery wave above the $1,450 level.

Ethereum price daily chart | Source: ETH/USD on TradingView.com

Ethereum is up more than 10% from the low and trading above the $1,550 level. There was a move above the 23.6% Fib retracement level of the downward move from the $2,106 swing high to the $1,385 low. However, the price is still showing many bearish signs below the $1,880 support and the 50-day simple moving average (blue).

On the upside, immediate resistance is seen near the $1,700 level. The first major resistance sits near the $1,750 level and the 50% Fib retracement level of the downward move from the $2,106 swing high to the $1,385 low.

A clear move above the $1,750 resistance zone could send Ether price toward the $1,830 level. The main resistance seems to be forming near the $1,950 level and the 50-day simple moving average (blue). There is also a connecting bearish trend line forming with resistance at $1,950 on the daily chart.

If the bulls push the price above the trend line resistance, ETH could start a steady increase. In the stated case, Ether price could rise toward the $2,280 resistance.

The next resistance is near the $2,550 zone or the 1.618 Fib extension level of the downward move from the $2,106 swing high to the $1,385 low. A convincing move above the $2,550 level could open the doors for a steady increase toward the $2,800 level.

Another Decline In ETH?

If Ether fails to surpass the trend line or $1,750, it could continue to move down. Immediate support on the downside is near the $1,550 level. The first major support sits near the $1,380 level. A daily close below the $1,380 level might spark heavy bearish moves in Ethereum.

In the stated case, the price could drop and test the $1,200 support. If there is a clear move below the $1,200 support, ETH price might even decline and test the $1,000 support zone in the coming days.

Overall, Ethereum price is still consolidating below $1,750 and $1,950. It must settle above $1,950 and then $2,000 to start a decent recovery wave.