Ethereum, one of the leading cryptocurrencies, faces resistance as it moves lower from the $1,880 level. This article explores the latest price action of Ethereum (ETH) against the US dollar (USD) and examines the potential scenarios that could unfold in the near future.
Price Analysis and Resistance Levels:
The price of Ethereum is currently trading below $1,830 and the 100-hourly Simple Moving Average, indicating a bearish sentiment. On the hourly chart of ETH/USD, a connecting bearish trend line is forming with resistance near $1,840. This level is a critical hurdle that Ethereum needs to overcome to resume its upward momentum. If the price breaks above $1,840, it could accelerate higher towards the $1,880 level, followed by further resistance at $1,920. A significant breakthrough above $2,000 might trigger a sustained rally towards the $2,120 resistance.
Support Levels and Potential Downside:
However, if Ethereum fails to clear the $1,840 resistance, it could continue its downward trajectory. The initial support on the downside is near $1,810, accompanied by the 76.4% Fibonacci retracement level of the recent upward move from $1,792 to $1,873. A breach of this support level may lead to further losses, with the next major support zone located around $1,790. The main support sits at $1,770, and a close below this level could trigger bearish momentum. In such a scenario, the price might drop towards the $1,720 support zone, and extended losses could push it towards the $1,650 support zone in the near future.
Ethereum’s price action is currently pivotal, with resistance at $1,840 posing a significant challenge. A successful breakout above this level could set the stage for a bullish rally towards $1,880. However, if Ethereum fails to overcome the resistance, the price might experience further decline, targeting support levels at $1,810, $1,790, and $1,770. Traders and investors should closely monitor the price movements and key levels to make informed decisions regarding Ethereum positions.
Source: https://bitcoinworld.co.in/ethereum-faces-resistance-at-1840-will-it-break-or-continue-to-decline/