Ethereum Price Consolidation Below $1,900: What Could Trigger The Sharp Drop?
Ethereum, the second largest cryptocurrency by market cap, is currently facing challenges to surpass a crucial resistance level. Despite the recent gains, Ethereum’s price was unable to break the $1,900 and $1,920 barriers. This article delves into Ethereum’s ongoing struggle against the prevailing bearish sentiment, examining key technical indicators and potential price moves.
Bearish Resistance Hampers Ethereum’s Progress
Ethereum price has faced significant hurdles at $1,900 and $1,920, impeding its upward trajectory. Currently, the cryptocurrency is trading below $1,880 and the 100 hourly Simple Moving Average (SMA). On the hourly chart of ETH/USD, a prominent bearish trend line has formed, indicating resistance near $1,855. This continued bearish pressure suggests that Ethereum may continue to face challenges in overcoming the $1,900 resistance zone.
Rally Halts as Ethereum Struggles Beyond Resistance
Following a surge from the $1,775 zone, Ethereum experienced a price increase that surpassed the $1,850 resistance level. However, like Bitcoin, the bears thwarted any further gains near the $1,900 zone. A peak formed around $1,898, prompting the move to the downside. Ethereum then broke below the $1,850 support zone, falling below the 50% Fib retracement level of its previous upward swing from a low of $1,777 to a high of $1,898.
Key Indicators and Potential Scenarios
Ether is currently trading below its hourly 100-SMA and $1,880, reinforcing the bearish sentiment. The hourly chart of ETH/USD reveals the formation of a significant bearish trendline near $1,855. Ethereum is currently finding support at $1,820 and the 61.8% Fib retracement level of its recent up move. The immediate resistance levels are anticipated at $1,855 and $1,900. A successful breach of this level could push Ethereum towards $1,920, followed by a potential profit of up to $2,000 and beyond.
Risk of Weakness and Level of Support
If Ethereum fails to surpass the $1,855 resistance, Ethereum could continue its downward trajectory. Initial support lies around $1,820, with the next significant level of support at $1,800. A breach below $1,800 could result in a slide towards the $1,740 support level. Further losses might push the price towards $1,700 or even $1,660 in the coming sessions.
Ethereum’s struggle to overcome the $1,900 and $1,920 resistance levels has created a challenging environment for the cryptocurrency. Traders and investors keep an eye on key support and resistance levels, analyzing technical indicators to gauge potential future Ethereum price movements.
