Ethereum extended the drop below the $1,820 support against the US Dollar. ETH tested $1,730 and remains at risk of more downside in the near term.
- Ethereum gained bearish momentum and dipped below $1,820.
- The price is now trading below $1,800 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,910 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is in trouble and remains at risk of further losses below $1,700.
Ethereum price gains bearish momentum
Ethereum remained below the $2,000 resistance zone and the 100 hourly simple moving average. As a result, there was a strong bearish reaction below the $1920 support.
The bears were able to push the price below $1,820 and $1,800. The price decreased more than 10% and traded below $1,750. A low is formed near $1,727 and the price is now consolidating losses. On the upside, an initial resistance is near the $1,770 level. It is close to the 23.6% Fibonacci retracement level of the recent drop from the $1,911 high to $1,727 low.
The next major resistance is near the $1,820 level. It is close to the 50% Fibonacci retracement level of the recent drop from the $1,911 high to $1,727 low.
Major resistance is now forming near the $1,920 level. There is also a key bearish trend line forming with resistance near $1,910 on the hourly chart of ETH/USD. A close above the $1920 level could open the doors for a steady rise.
Source: ETHUSD on TradingView.com
In the indicated case, the price of ether could rally towards the $2,000 resistance zone. Any further gains could perhaps send it towards the key $2,085 resistance zone.
More losses in ETH?
If ethereum fails to recover above the $1,820 resistance, it could continue moving lower. An initial support on the downside is near the $1,730 zone.
The next big support is near the $1,700 level. A break down below the $1,700 level could spark another sharp drop. In the indicated case, the price could dip towards the $1,650 level. More losses may require a move to $1,500.
MACD per hour – The MACD for ETH/USD is now gaining momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 40 level.
Major Support Level: $1,720
Major resistance level: $1,820