The price of Ethereum (ETH) has once again failed to break above the crucial resistance level of $1,880 against the US Dollar. As a result, the cryptocurrency has experienced a decline and is currently struggling to find support. Analysts predict that unless the situation improves, ETH could continue its downward trajectory, potentially targeting the $1,790 support level.
At present, Ethereum is moving lower from the resistance zone at $1,880. The price has dropped below $1,830 and is also trading below the 100-hourly Simple Moving Average, indicating a bearish trend. On the hourly chart of ETH/USD, a bearish trend line is forming with resistance around $1,840, further reinforcing the downward pressure.
If the current bearish sentiment persists, the ETH/USD pair may experience an acceleration in its downward movement towards the $1,790 and $1,780 levels. This is a critical juncture for Ethereum, as breaching these support levels could open the door to further losses.
The recent price action mirrors that of Bitcoin, as both cryptocurrencies have faced strong selling pressure near their respective resistance levels. Ethereum attempted a fresh increase above the $1,850 zone but failed to sustain momentum, leading to a renewed decline. The price dropped from its high of $1,870 and fell below the $1,850 support level.
The downward move also saw Ethereum breaking below the 50% Fibonacci retracement level of the upward swing from the $1,800 low to the $1,873 high. Furthermore, ETH is currently trading below the 100-hourly Simple Moving Average, adding to the bearish outlook.
Looking at the immediate future, Ethereum faces resistance near the $1,830 zone and the 100-hourly Simple Moving Average. However, breaking above this resistance level is essential for ETH to regain its bullish momentum and challenge the $1,880 barrier once again.
Ethereum Faces Critical Support Levels as Bearish Momentum Persists
In the event that Ethereum fails to sustain upward momentum and breaks below the aforementioned support levels, the next significant support is located near the $1,800 zone. However, the main support level rests at $1,770, which holds crucial importance for determining the cryptocurrency’s future trajectory. A close below this support level could trigger a surge in bearish momentum.
If Ethereum experiences such a scenario, market participants should be prepared for a potential drop towards the $1,700 support zone. Further losses may intensify the selling pressure, leading to a possible move towards the $1,650 support zone in the near future.
The current price action in Ethereum highlights the challenges faced by the cryptocurrency as it attempts to regain bullish momentum. With the failure to clear the resistance at $1,850 and the increasing bearish sentiment, the ETH/USD pair is under considerable pressure. Traders and investors are advised to closely monitor the price movement and observe whether Ethereum can gather enough momentum to surpass the resistance levels and reverse its current downward trend.
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