Ethereum Faces Hurdles in Breaking Key Resistance Level Amid Bearish Pressure
Ethereum, one of the leading cryptocurrencies, is currently grappling with obstacles as it attempts to surpass key resistance levels of $1,780 and $1,800. Despite his efforts, the price has remained below the $1,800 mark and the 100-hour Simple Moving Average, signaling a challenging path ahead. Let’s dive into the technical indicators to gain deeper insight into the current state of Ethereum.
Technical Analysis:
On the hourly chart of ETH/USD, a significant bearish trend line has formed, with resistance near $1,760. This trendline served as an important barrier to Ethereum’s upward movement. A close below the $1,720 level could lead to a substantial drop in price, posing a potential challenge for ETH.
Recent Performance:
Ethereum failed to break above the $1,780 resistance level, reflecting the struggles faced by Bitcoin. While price briefly surged above the 23.6% Fibonacci retracement level, tracing its decline from a high of $1,854 to a low of $1,718, it failed to maintain its bullish momentum. Currently, Ethereum is trading below $1,750 and showing signs of being bearish.
Current View:
Ether faces significant resistance at $1,800 and the 100-hour Simple Moving Average, highlighting the challenges that exist for the cryptocurrency. Immediate resistance is observed around the $1,755 zone, parallel to the trend line. The next major resistance lies near $1,780, close to the 50% Fibonacci retracement level. A decisive break above the $1,775 and $1,780 levels could pave the way for Ethereum to rise towards $1,850. Further resistance awaits at $1,880, and a break of this level could push Ethereum towards the key $1,920 barrier. A further rise above $1,920 could even push the price towards the $2,000 psychological resistance level.
Support Levels and Potential Weaknesses:
However, failure to clear the $1,755 resistance could result in a continued downside move for Ethereum. Initial support on the downside is around $1,720. If this level is breached, the next major support will be $1,700. A break and close below the $1,700 support level could trigger a slide towards $1,640. Further losses could send the price closer to $1,600, potentially $1,550, in the upcoming trading sessions.
Technical Indicators:
The hourly Moving Average Convergence Divergence (MACD) indicator for ETH/USD reflects increasing bearish momentum. Moreover, the Relative Strength Index (RSI) has fallen below the 50 level, indicating weakening buying pressure.
Ethereum faced hurdles while struggling to break a key resistance level. Bearish pressure and technical constraints hinder its advance, with the $1,780 and $1,800 levels presenting significant challenges. Traders and investors should closely monitor support and resistance levels, including $1,720, $1,755, and $1,780, for insight into potential price moves.
