Ethereum, one of the leading cryptocurrencies, is currently grappling with obstacles as it attempts to surpass crucial resistance levels at $1,780 and $1,800. Despite its efforts, the price remains below the $1,800 mark and the 100-hourly Simple Moving Average, signaling a challenging path ahead. Let’s delve into the technical indicators to gain deeper insights into Ethereum’s current situation.
Technical Analysis:
On the hourly chart of ETH/USD, a significant bearish trend line has formed, with resistance near $1,760. This trend line serves as a critical barrier to Ethereum’s upward movement. A close below the $1,720 level could lead to a substantial decline in the price, posing a potential challenge for ETH.
Recent Performance:
Ethereum failed to break above the $1,780 resistance level, mirroring the struggle faced by Bitcoin. While the price briefly surged above the 23.6% Fibonacci retracement level, tracing the decline from the $1,854 high to the $1,718 low, it failed to sustain bullish momentum. Currently, Ethereum is trading below $1,750 and exhibiting bearish signs.
Current Outlook:
Ether is encountering significant resistance at $1,800 and the 100-hourly Simple Moving Average, indicating the prevailing challenges for the cryptocurrency. Immediate resistance is observed around the $1,755 zone, aligned with the trend line. The subsequent major resistance lies near $1,780, close to the 50% Fibonacci retracement level. A decisive breakthrough above the $1,775 and $1,780 levels may pave the way for Ethereum to ascend toward $1,850. Further resistance awaits at $1,880, and breaching this level could propel Ethereum toward the key barrier of $1,920. Subsequent gains above $1,920 may even propel the price toward the psychological $2,000 resistance level.
Support Levels and Potential Downside:
However, failure to clear the $1,755 resistance may result in the continued downward movement for Ethereum. The initial support on the downside is around $1,720. Should this level be breached, the next major support is $1,700. A break and close below the $1,700 support level could trigger a decline toward $1,640. Further losses may lead the price to approach $1,600, potentially $1,550, in upcoming trading sessions.
Technical Indicators:
The hourly Moving Average Convergence Divergence (MACD) indicator for ETH/USD reflects an increasing bearish momentum. Additionally, the Relative Strength Index (RSI) has fallen below the 50 level, suggesting weakening buying pressure.
Ethereum faces hurdles as it struggles to break through key resistance levels. Bearish pressure and technical obstacles impede its progress, with the $1,780 and $1,800 levels posing significant challenges. Traders and investors should closely monitor the support and resistance levels, including $1,720, $1,755, and $1,780, to gain insights into potential price movements.
