Ethereum Fails to Sustain Strength Above $1,850
Ethereum made an attempt to surpass the $1,820 level and even broke the $1,850 resistance. However, the price was unable to gain significant momentum and started a downward correction. This correction is similar to what Bitcoin experienced.
Bullish Trend Line Breaks on Ethereum Chart
During the correction, Ethereum dropped below the $1,810 and $1,800 levels. Additionally, there was a break below a crucial bullish trend line with support around $1,810 on the hourly chart of ETH/USD. The pair reached close to the $1,750 support level before witnessing a recovery.
A low was formed near $1,763 and the price is currently consolidating. It is trading close to the 23.6% Fibonacci retracement level of the downside correction from the swing high of $1,866 to the low of $1,763.
Ethereum Trading Above Key Support Level
Currently, Ethereum is trading above $1,750 and the 100-hourly Simple Moving Average. On the upside, it faces resistance near the $1,815 level. This level aligns with the 50% Fibonacci retracement level of the downside correction from the swing high of $1,866 to the low of $1,763.
The first major resistance sits at around $1,850. If Ethereum manages to close above this resistance level, it could lead to a decent increase in price. In that case, Ether may surpass $1,865 and potentially test $1,920. The next significant resistance stands near $1,950, and if breached successfully, it could propel Ethereum’s price higher towards the $2,000 mark.
Potential for Further Decline
If Ethereum fails to overcome the $1,815 resistance, it could trigger another decline. The initial support on the downside is around $1,765. Subsequently, the next key support level lies at $1,750 and coincides with the 100-hourly Simple Moving Average. A break below this support level might lead to further downward movement, potentially pushing Ether towards the $1,700 level.
Technical Indicators
The hourly MACD for ETH/USD shows a loss of momentum in the bullish zone. Additionally, the hourly RSI for ETH/USD has fallen below the 50 level.
Source: ETHUSD on TradingView.com
Hot Take: Ethereum Faces Resistance at $1,815
Ethereum’s recent attempt to break above the $1,850 level faced limitations, leading to a downward correction. The price is currently consolidating above $1,750 and the 100-hourly Simple Moving Average. However, if it fails to surpass the resistance at $1,815, there is a possibility of further decline towards the $1,700 level. On the other hand, a successful close above $1,850 could result in a substantial increase with potential targets at $1,920 and beyond. Traders should closely monitor these key levels and indicators to gauge Ethereum’s next move.
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