Ethereum Price Forecast: ETH fights for breakout back above $2,000, but technicals remain weak

Ethereum has made a considerable recovery from the drop in price earlier in the week. The losses followed a rejection from highs above $2,000. It became difficult to stop the bearish leg because the declines were widespread in the market, led by Bitcoin’s slump to $45,000.

Meanwhile, Ethereum is trading marginally above $1,600. Price action on Tuesday saw Ethereum recover from $1,400 to $1,700. However, bulls lost steam, paving the way for the ongoing correction.

The 4-hour chart shows that the 200 Simple Moving Average (SMA) support has just been lost. In other words, if it flips into a resistance area, Ether’s recovery will be an uphill battle. Bulls need to close the day above $1,600, if not the moving average, to avoid losses and sustain the uptrend towards $2,000.

It is essential to keep in mind that the Relative Strength Index (RSI) hints at consolidation taking precedence in the coming sessions. The trend strength indicator is leveling around 40 following a recovery from the oversold area. Note that movement above the midline may renew the uptrend by encouraging more buyers to join the market.

ETH/USD 4-hour chart

On the other hand, ETH will continue with the downtrend if the 200 SMA flips into a resistance. Selling pressure is likely to mount under this level because of the bulls getting exhausted. On the downside, formidable support will be found at $1,480 and $1,400, respectively.

Ethereum intraday levels

Spot rate: $1,602

Relative change: -26

Percentage change: -1.6%

Trend: Bearish

Volatility: Low

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