Ethereum Key Indicators Suggest Strengthening Case For More Losses
Ethereum found support near $1,760 and corrected higher against the US dollar. ETH is now facing a major resistance near $1,850 and $1,880.
Ethereum is slowly moving higher and trading above USD 1,800. The price is now trading below $1,880 and the 100 hourly simple moving average. A major bearish trendline is forming with resistance near $1,905 on the ETH/USD hourly chart (data feed via Kraken). The pair could start another decline unless there is a clear move above $1,880 and $1,920.
Ethereum Price Faces Resistance
Ethereum extended its decline below the $1,850 support zone. It even peaked below $1,800 before the bulls appeared near the $1,760 zone.
It hit a low near $1,762 and the price started a recovery. The price climbed above the $1,800 resistance level. In fact, Ether price moved above the 23.6% Fib retracement level from the downward move from the $2,015 swing high to $1,762 low.
However, the bears are currently protecting more gains above the USD 1,850 level. It is also trading below $1,880 and the 100 hourly simple moving average.
On the upside, an initial resistance is near the $1,860 level and the 100 hourly simple moving average. The next major resistance is near the $1,880 zone. It is near the 50% Fib retracement level of the downward move from the $2,015 swing high to $1,762 low.
Source: ETHUSD on TradingView.com
A major bearish trendline is also forming with resistance near $1,905 on the ETH/USD hourly chart. A clear move above the trendline and the $1,920 resistance could trigger a decent rise. In the case mentioned, the price could be $2,000, above which $2,050 could test.
New Drop in ETH?
If ethereum fails to recover above the $1,920 resistance, it could spark another drop. An initial support on the downside is near the $1800 zone.
The next major support is near the $1,760 level. A marked move below the $1,760 level could spark a large drop. The next big support could be $1,720. More losses could send the price towards the USD 1,650 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 now struggling to clear the 50 level.
Major Support Level – $1,760
Major Resistance Level – $1,920