Ethereum Faces Renewed Pressure as Price Drops Below Key Levels
Ethereum's price has recently experienced a notable decline, dropping below the $1,980 mark and struggling to reclaim higher ground. This fresh bearish momentum puts the cryptocurrency at a critical juncture, with technical indicators signaling a potential for further losses if key support levels fail to hold.
The Downward Trajectory and Bearish Formation
The price of Ethereum (ETH) has failed to sustain momentum above the $2,000 threshold, mirroring broader market corrections. Following this rejection, ETH swiftly fell below the $1,980 and $1,960 support levels, entering a clear bearish zone. Notably, the price dipped beneath the 50% Fibonacci retracement level of its recent upward move from $1,745 to $2,168. An emerging bearish trend line, with resistance identified around $1,960 on the hourly chart, reinforces the current negative sentiment. Furthermore, the cryptocurrency is trading below its 100-hourly Simple Moving Average, indicating sustained selling pressure.
Critical Support and Resistance Ahead
For Ethereum to mount a recovery, bulls must defend the $1,920 level and push the price back above the immediate resistance at $1,960 and the aforementioned bearish trend line. Should this occur, the next significant resistance lies at $2,000, followed by $2,050. A decisive break above $2,050 could pave the way for a rally towards $2,150, and potentially even $2,250 or $2,280 in the near term. Conversely, a failure to overcome the $1,960 resistance could trigger a fresh leg down. Initial downside support is found near $1,920, with the first major support zone around $1,900, which aligns with the 61.8% Fibonacci retracement level. A breach below $1,900 could expose ETH to further declines towards $1,845, and potentially the $1,800 region, with the ultimate major support standing at $1,750.
Key Technical Indicators
Both the Hourly Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) for ETH/USD are currently flashing bearish signals. The MACD is gaining momentum in the bearish zone, while the RSI sits firmly below the 50 mark, underscoring the prevailing downward pressure.
