Ethereum's Price Faces Downside Risks Below $2,040 Resistance

Ethereum's price has been struggling to maintain its upward momentum, currently consolidating above the $1,980 level. The cryptocurrency faced resistance at the $2,050 mark and is now trading below $2,020 and the 100-hourly Simple Moving Average. A bearish trend line is forming with resistance at $2,040 on the hourly chart of ETH/USD, indicating potential downside risks.

Ethereum's recent attempt to rise above $2,100 was met with a correction, leading to a decline below the $2,040 and $2,020 support levels. The price tested the $1,980 zone, forming a low at $1,982 before attempting a fresh upward move. However, the price remains below the 100-hourly Simple Moving Average and faces hurdles near the $2,040 level. The next key resistance is near the $2,050 level, with the first major resistance at $2,095.

A clear move above the $2,095 resistance could send the price toward the $2,150 resistance, potentially leading to further gains toward the $2,250 or even $2,320 resistance zones. However, if Ethereum fails to clear the $2,040 resistance, it could start another decline. Initial support on the downside is near the $2,000 level, with the first major support at the $1,980 zone. A clear move below $1,980 could push the price toward the $1,880 support, and further losses might send the price toward the $1,820 support level or even the $1,750 support.

Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bearish zone, while the RSI for ETH/USD is now below the 50 zone. The major support level is at $1,980, and the major resistance level is at $2,040. These indicators, along with the bearish trend line, suggest that Ethereum's price is at risk of a downside break, potentially leading to further declines in the near term.