TLDR:
- Ethereum price found support at $1,980 after failing to break above $2,100
- A bearish trend line is forming with resistance at $2,050 on hourly charts
- Technical analysis shows ETH trading below the 100-hourly Simple Moving Average
- Weekly chart analysis indicates a concerning triple-top pattern around $4,000
- If ETH breaks below support, it could target $1,920 or even $1,810
Ethereum has been consolidating after experiencing a pullback from higher levels. The cryptocurrency found support just above the $1,980 mark. This level has become an important threshold for ETH in its current trading range.
ETH previously failed to maintain momentum above $2,100. This rejection led to a correction that pushed the price below several support zones. The cryptocurrency tested the $1,980 zone and formed a low at $1,982.
The price has shown some recovery since hitting these lows. Ethereum managed to climb back above the $2,000 level. This recovery represents a modest bounce from the recent bottom.
Technical Indicators
Looking at the technical picture, Ethereum is currently trading below the $2,040 level. It also remains under the 100-hourly Simple Moving Average. These factors suggest bearish pressure remains in play.
A connecting bearish trend line has formed. This trend line shows resistance near $2,050 on the hourly chart of ETH/USD. This pattern indicates sellers remain active at higher levels.
The hourly MACD indicator is losing momentum in the bullish zone. This technical signal suggests the upward force is weakening. The RSI indicator has fallen below the 50 zone, pointing to increased selling pressure.
Ethereum faces hurdles near the $2,040 level. Another resistance sits at the 50% Fibonacci retracement level of the recent decline. These technical barriers must be overcome for bullish momentum to return.
Resistance and Support Levels
The first major resistance level for Ethereum sits near $2,050. If ETH breaks above this level, the next challenge would be at $2,100. This represents a key barrier that must be cleared for continued upward movement.
A successful move above $2,100 could open the path toward $2,150. Breaking this resistance could potentially trigger more substantial gains. In such a scenario, Ethereum might target the $2,250 zone or even reach $2,320.
On the downside, immediate support exists near $2,000. If this level breaks, the next major support sits at $1,980. This zone has already been tested once in the recent pullback.
A decisive drop below $1,980 could accelerate losses. In this case, ETH might slide toward the $1,920 support level. Further weakness could push the price to $1,880 or even $1,810 in the coming days.
Longer-Term Outlook
The weekly chart presents a concerning picture for Ethereum. ETH has formed a triple-top pattern around the $4,000 level. This formation suggests strong selling pressure at higher levels.
The triple top consists of two key parts: the top level and a neckline at $2,138. Ethereum has moved below this neckline, which technical analysts view as bearish. The recent retest of this level confirms the negative outlook.
Adding to the bearish view, ETH has broken below an ascending trendline. This trendline connected the lowest swings since July 2022. Previously, Ethereum would bounce when testing this line.
The cryptocurrency has also dropped below important moving averages. Both the 50-week and 200-week moving averages have been breached. These breaks suggest more downside risk in the weekly timeframe.
Some technical projections suggest a potential drop to $1,140. This target comes from measuring the distance between the triple top and the neckline. However, such moves often take time to develop if they occur.
Daily Chart Analysis
The daily chart shows some stabilization in ETH price. The cryptocurrency has moved from a low of $1,763 to around $2,130 recently. This bounce offers some relief for short-term traders.
Despite this recovery, Ethereum remains below the 50-day moving average. This positioning indicates bears maintain control of the market for now. Buyers have yet to regain momentum on this timeframe.
A bearish flag pattern has formed on the daily chart. This pattern typically acts as a continuation signal. It consists of a long vertical decline followed by a temporary consolidation phase.
Another concerning formation is a rising wedge pattern. This setup features two ascending and converging trendlines. Such patterns often resolve with downside breaks in price action.
If the bearish scenarios play out, the initial target to watch would be $1,763. This level marks the recent monthly low. A break below could trigger a more serious decline in Ethereum’s value.
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