TLDR:
- Ethereum price failed to break above $2,000 resistance and has declined below $1,880
- ETH formed a low at $1,767 and is trading below the 100-hourly Simple Moving Average
- A bearish trend line has formed with resistance at $1,820 on the hourly chart
- Major resistance levels are at $1,820, $1,880, and $1,920
- If ETH fails to clear $1,880 resistance, it could decline further toward $1,765, $1,720, or even $1,650
Current Market Position
Ethereum’s price is showing weakness after failing to maintain momentum above the $2,000 resistance level. The second-largest cryptocurrency has fallen below $1,880 and is now in a consolidation phase. This drop mirrors Bitcoin’s recent decline, suggesting a broader market trend.
The price reached a low of $1,767 recently. Though there was an attempt to move upward past the $1,800 mark, ETH remains below the 23.6% Fibonacci retracement level. This level is calculated from the recent decline from $2,033 high to $1,767 low.
Technical indicators show ETH trading below both $1,880 and the 100-hourly Simple Moving Average. This positioning typically signals bearish momentum in the short term.
Technical Barriers
A bearish trend line has formed on the hourly chart with resistance near $1,820. This trend line adds another hurdle for any potential upward movement.
The $1,820 level appears to be the first obstacle for bulls to overcome. Beyond that, the $1,880 level stands as a more important resistance point, coinciding with the 50% Fibonacci retracement level of the recent downward move.
If ETH manages to break above $1,880, the next major resistance would be around $1,920. This level could prove crucial for determining future price action.
Potential Upside Scenario
For Ethereum to reverse its downward trend, it needs to clear several key resistance levels. A decisive move above $1,920 could potentially push the price toward the $2,000 mark.
Should ETH breach the $2,000 resistance, it might trigger additional gains in upcoming trading sessions. Under this bullish scenario, Ethereum could target the $2,050 resistance zone.
More optimistic projections suggest ETH might even reach $2,120 in the near term if buying pressure increases. However, this would require a major shift in market sentiment.
Downside Risks
If Ethereum fails to move past the $1,880 resistance, another decline may be imminent. The initial support to watch is near the $1,780 level, followed by a major support at $1,765.
A clear break below $1,765 could accelerate the downward momentum. In this case, the price might drop toward $1,720 support.
Further losses could push ETH toward the $1,680 level in the near term. Below that, the next key support sits at $1,650, which would represent a deeper correction.
Technical Indicators
The hourly MACD (Moving Average Convergence Divergence) for ETH/USD is losing momentum in the bearish zone. This technical indicator suggests diminishing selling pressure, though still within negative territory.
The hourly RSI (Relative Strength Index) for ETH/USD is currently below the 50 zone. This indicates that bearish momentum still has the upper hand in the short term.
These indicators align with the overall price action, suggesting that Ethereum currently lacks the buying pressure needed for a significant reversal. Traders should watch for potential shifts in these indicators as early signals of trend changes.
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