Over the past few days, Ethereum price has been displaying a somewhat bearish trend after starting a fresh increase above the $1,850 zone. Unfortunately, ETH struggled to settle above the $1,925 and $1,940 resistance levels, which prevented prices from climbing any higher. The situation is similar to what happened with Bitcoin at $29,500.
A high was formed near $1,939, and the price started a fresh decline. There was a sharp decline below the $1,900 and $1,880 levels, indicating that Ethereum price began to display bearish signs. This sharp decline was due to a break below a key bullish trend line with support near $1,895 on the hourly chart of ETH/USD. A low was eventually formed near $1,825, and the price is now consolidating losses.
At the moment, the ether price is trading below $1,880 and the 100-hourly Simple Moving Average. This means that immediate resistance is near the $1,850 level, which is also close to the 23.6% Fib retracement level of the recent decline from the $1,939 swing high to the $1,825 low. The next major resistance seems to be forming near $1,900 and the 100-hourly Simple Moving Average. It is worth noting that the 50% Fib retracement level of the recent decline from the $1,939 swing high to the $1,825 low is also near the $1,900 level.
Should the price rise above $1,900, it might start a fresh increase. If this happens, the price could rise toward the $1,940 resistance. Any more gains could send Ether toward the $2,000 resistance.
On the other hand, if Ethereum fails to clear the $1,900 resistance, it could continue to move down. Initial support on the downside is near the $1,825 level. The next major support is near the $1,800 zone, below which ether price might drop toward the $1,740 support zone. Any additional losses could take the price toward $1,700 in the near term.
Looking at the technical indicators, the hourly MACD for ETH/USD is now gaining momentum in the bearish zone. The RSI for ETH/USD is well below the 50 level, indicating bearishness in the market. The major support level is at $1,800, while the major resistance level is at $1,900.
Overall, Ethereum price started a fresh decline from the $1,940 resistance, and this decline could continue if the price clears the $1,800 support zone. On the other hand, if the price continues to rise and surpasses the $1,900 resistance, the bulls might be back in control, leading ETH price toward $2,000. It is important to note that the cryptocurrency market is highly volatile and prone to change at a moment’s notice, so investors should always keep an eye on the price movements and be ready to adjust their strategies accordingly.
