Ethereum is currently encountering significant resistance in the $1,880 and $1,900 levels. The price is trading below $1,875 and the 100-hourly Simple Moving Average (SMA), indicating potential challenges for further upside movement.
Earlier, ETH experienced a decline below a key bullish trend line with support at approximately $1,870 on the hourly chart of ETH/USD sourced from Kraken. The cryptocurrency tested the $1,850 support level and subsequently initiated a fresh recovery. However, it is currently struggling to rise above the same trend line and the $1,880 barrier.
Ethereum’s price failed to surpass the $1,885 resistance, prompting a new downward move. The cryptocurrency is now trading within a range, similar to Bitcoin’s recent price action. The bulls managed to push the price above the 50% Fibonacci retracement level of the downward move from the $1,885 swing high to the $1,850 low. Nevertheless, further upside momentum is lacking.
On the upside, immediate resistance is near the $1,875 level and the 100-hourly SMA, aligning with the 61.8% Fibonacci retracement level of the recent downward move. The first major resistance is around the $1,885 level, followed by a crucial level at $1,900. A successful break above this level may pave the way for a rally toward the $1,950 zone, with even higher gains potentially targeting the $2,000 hurdle.
Conversely, failure to clear the $1,875 resistance might trigger a fresh decline. The initial support on the downside is approximately at the $1,860 level. If the price fails to hold above this support, it may revisit the $1,850 zone. A more substantial support level is near $1,820, and further losses might lead to testing the $1,780 support level.
Key technical indicators, such as the hourly MACD and Relative Strength Index (RSI), are showing signs of losing momentum and falling below the 50 level, indicating potential downward pressure.
As Ethereum grapples with resistance and seeks to maintain its current price levels, traders are closely monitoring the crucial support and resistance levels. The $1,880 and $1,900 barriers hold significant importance, and a decisive move above these levels could pave the way for further gains. Conversely, a break below key support levels may lead to increased selling pressure and potential declines toward the $1,800 and $1,750 levels.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.