Ethereum, the popular cryptocurrency, is experiencing a downward movement from its resistance level of $1,920. As the price trades below $1,880 and the 100-hourly Simple Moving Average, a short-term bearish trend line is forming with resistance near $1,840. This article analyzes Ethereum’s current price action and highlights potential support and resistance levels to watch out for.
Ethereum (ETH) is encountering resistance at the $1,920 mark, leading to a downward trajectory in its price movement. Currently, the price is trading below $1,880 and the 100-hourly Simple Moving Average, indicating a bearish sentiment. On the hourly chart of ETH/USD, sourced from Kraken’s data feed, a short-term bearish trend line is taking shape near $1,840.
Considering these developments, there is a possibility of further decline towards the immediate support level at $1,790 in the near term. Ethereum’s price has remained below the crucial resistance zone at $1,920, gradually declining below the $1,880 and $1,865 levels. Contrary to Bitcoin’s performance, it has reached a new weekly low below $1,840.
A recent low formed around $1,817, and currently, the price is consolidating its losses. It remains below the 23.6% Fibonacci retracement level, calculated from the recent drop between the $1,912 swing high and the $1,817 low. Moreover, an additional short-term bearish trend line is emerging with resistance near $1,840 on the ETH/USD hourly chart.
Ether’s bearish signs persist below $1,880 and the 100-hourly Simple Moving Average. However, if Ethereum maintains support above $1,820, it could regain positive momentum. The immediate resistance to watch out for is near the $1,845 level, aligned with the trend above the line. Subsequently, the next significant resistance lies close to the $1,865 level and the 100-hourly Simple Moving Average, followed by the 50% Fibonacci retracement level.
Ethereum’s first significant resistance level is at $1,880, while the key breakout zone remains at $1,920 and $1,930. A decisive close above the $1,930 zone could trigger a fresh rally. Furthermore, if the price surpasses this level, it may reach $2,000, eventually targeting the $2,050 level. Ether could even test the $2,120 resistance in the event of substantial gains.
On the downside, failure to breach the $1,865 resistance level could result in further downward movement. Initially, support is anticipated around the $1,820 level. If this level fails to hold, the next significant support lies near $1,790. A breach below $1,790 might propel the price toward $1,740, with the possibility of extended losses leading to the $1,720 support level.
Technical Indicators:
The Hourly Moving Average Convergence Divergence (MACD) for ETH/USD shows increased momentum in the bearish zone, indicating a downward trend. Additionally, the Hourly Relative Strength Index (RSI) for ETH/USD has dipped below the 50 levels, reinforcing the bearish sentiment.
As Ethereum faces resistance at the $1,920 level, its price continues to consolidate below key levels, such as $1,880 and the 100-hourly Simple Moving Average. Traders and investors should closely monitor the short-term bearish trend line near $1,840. The support level to watch out for is at $1,790, while a successful break above the $1,865 resistance could pave the way for a potential rally toward higher price targets. However, the technical indicators currently suggest a bearish market sentiment, indicating the need for caution in the near term.
