The price of Ethereum has declined below the $1,820 support against the US Dollar, indicating bearish signs that could lead to further decline towards the $1,700 level. The cryptocurrency is currently trading below $1,800 and the 100-hourly Simple Moving Average. Meanwhile, two bearish trend lines are forming with resistance near $1,790 and $1,820 on the hourly chart of ETH/USD.
According to reports, Ethereum failed to recover above the $1,850 resistance zone, resulting in a fresh decline that broke the $1,820 support zone in a similar manner to Bitcoin. The price tested the $1,760 zone and a low was formed near $1,761. Although the cryptocurrency is now consolidating losses, it is trading below the key $1,800 resistance level and the 100-hourly Simple Moving Average.
Moreover, its immediate resistance is around the $1,785 zone and the first trend line that is close to the 23.6% Fib retracement level of its downward move from the $1,873 swing high to the $1,761 low. The first major resistance is near the $1,820 level and the second trend line, which is close to the 50% Fib retracement level of the previous downward move. However, a close above the $1,820 resistance could potentially send Ethereum towards $1,850 and even higher.
On the downside, if Ethereum fails to clear the $1,820 resistance, then it could continue to move lower. Its initial support sits near the $1,760 level, followed by a major support zone near $1,720. The main support could be near $1,700, and if it closes below that level, then the cryptocurrency may accelerate lower towards the $1,640 support zone.
At present, the Hourly MACD for ETH/USD is gaining momentum in the bearish zone, while the Hourly RSI for the cryptocurrency is below the 50 level. With another cryptocurrency experiencing a downward slope, it remains to be seen when Ethereum will bounce back from this recent decline.
Source: TradingView.com
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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