Ethereum Bears Hesitate But Further Downsides Seem Likely
Ethereum price is moving lower below the $1,800 support against the US Dollar. ETH could accelerate lower toward the $1,650 support in the near term.
- Ethereum is currently moving lower from the $1,850 resistance zone.
- The price is trading below $1,820 and the 100-hourly Simple Moving Average.
- There is a major bearish trend line forming with resistance near $1,800 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a decent increase if there is a move above the $1,800 and $1,830 resistance levels.
Ethereum Price Turns Red
Ethereum’s price failed to start a recovery wave above the $1,850 resistance zone. ETH remained in a bearish zone and traded below the $1,830 support, similar to Bitcoin.
The decline was such that the price even broke the $1,800 support. A new weekly low is formed near $1,770 and the price is now trading in the red zone. Ether is well below $1,820 and the 100-hourly Simple Moving Average. There is also a major bearish trend line forming with resistance near $1,800 on the hourly chart of ETH/USD.
Immediate resistance is near the $1,800 level or the 23.6% Fib retracement level of the recent decline from the $1,888 swing high to the $1,770 low.
The next resistance sits near $1,830 or the 50% Fib retracement level of the recent decline from the $1,888 swing high to the $1,770 low, above which Ethereum could test the 100-hourly Simple Moving Average. If there is a move above the $1,830 and $1,840 resistance levels, the price might rise toward the $1,880 level. Any more gains above the $1,880 resistance zone could start a decent increase toward the $1,920 resistance.
More Losses in ETH?
If Ethereum fails to clear the $1,830 resistance, it could continue to move down. Initial support on the downside is near the $1,770 level.
The next major support is near the $1,740 zone. If there is a clear move below the $1,740 support, the bears could gain strength and the price might decline heavily. The price might drop toward the $1,650 support zone in the stated case. Any more losses may perhaps take the price toward the $1,600 level in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is below the 50 level.
Major Support Level – $1,770
Major Resistance Level – $1,830
Chart from Tradingview
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