Ethereum, the second-largest cryptocurrency by market capitalization, is currently facing challenges in surpassing crucial resistance levels. Despite a recent uptick, Ethereum’s price cannot break through the barriers at $1,900 and $1,920. This article delves into the ongoing struggle of Ethereum against the prevailing bearish sentiment, examining key technical indicators and potential price movements.
Bearish Resistance Hampers Ethereum’s Progress
Ethereum’s price has encountered significant hurdles at $1,900 and $1,920, impeding its upward trajectory. Presently, the cryptocurrency is trading below $1,880 and the 100-hourly Simple Moving Average (SMA). On the hourly chart of ETH/USD, a prominent bearish trend line is forming, indicating resistance near $1,855. This persistent bearish pressure suggests that Ethereum might continue to face challenges in overcoming the $1,900 resistance zone.
Stalled Rally as Ethereum Struggles to Surpass Resistance
Following a surge from the $1,775 zone, Ethereum experienced a price increase surpassing the $1,850 resistance level. However, like Bitcoin, the bears thwarted further progress near the $1,900 zone. A peak was formed around $1,898, prompting a downward movement. Ethereum subsequently broke below the $1,850 support zone, falling beneath the 50% Fib retracement level of the previous upward swing from the $1,777 low to the $1,898 high.
Key Indicators and Potential Scenarios
Ether currently trades below the 100-hourly SMA and $1,880, reinforcing the bearish sentiment. The hourly chart of ETH/USD reveals the formation of a significant bearish trend line near $1,855. Ethereum is currently finding support at $1,820 and the 61.8% Fib retracement level from the recent upward move. Immediate resistance levels are anticipated at $1,855 and $1,900. A successful breach of these levels could propel Ethereum toward $1,920, followed by potential gains up to $2,000 and beyond.
Downside Risks and Support Levels
Should Ethereum fail to surpass the $1,855 resistance, it may continue its downward trajectory. Initial support lies around $1,820, with the next significant support level at $1,800. A breach below $1,800 could result in a decline toward the $1,740 support level. Subsequent losses might push the price towards $1,700 or even $1,660 in the upcoming sessions.
Ethereum’s struggle to overcome the resistance levels at $1,900 and $1,920 has created a challenging environment for cryptocurrency. Traders and investors are keeping a close eye on key support and resistance levels, analyzing technical indicators to gauge the potential future price movements of Ethereum.