Ethereum, the popular cryptocurrency, is currently trading in a range above the $1,875 level. However, it faces resistance below $1,910 and the 100 hourly Simple Moving Average (SMA). On the hourly chart of ETH/USD, there is a prominent ascending channel with support around $1,885.
If the price stays below $1,920 for a long time, it could experience a significant decline. Recently, Ethereum attempted to surpass the $1,900 level but failed to gain traction above the $1,920 resistance, following a similar pattern to Bitcoin.
While the price briefly dipped below $1,885, it managed to stabilize above $1,875, with a low forming near $1,877. Currently, it is slowly recovering above the $1,885 level, with the mentioned ascending channel providing support.
Immediate resistance lies around the $1,900 level, which is close to the 50% Fibonacci retracement of the recent slide from the $1,927 swing high to a low of $1,877. If Ethereum surpasses this hurdle, it may test the key resistance at $1,920.
Beyond $1,920, the next significant level of resistance is $1,940. If the bullish momentum continues, Ethereum has the potential to reach $2,000 resistance in the near term.
However, if the cryptocurrency fails to break the $1,920 resistance, it may face downward pressure. Initial support on the downside nears $1,885, aligned with the channel’s trend line. A break of this support could lead to further bearish momentum.
The first major support level is at $1,875, and a drop below this level may signal a stronger bearish trend. The next substantial support is around $1,825, and a close below this level could push the price towards the $1,770 support level. In case of a more significant dip, the door may be open for a potential move towards the $1,720 support level.
As for the technical indicators, the hourly Moving Average Convergence Divergence (MACD) for ETH/USD is showing weakening momentum in the bearish zone. The pair’s Relative Strength Index (RSI) is currently above the 50 level.
In short, Ethereum’s price is going through a critical phase, with major resistance at $1,920 and vital support at $1,875. Traders and investors will be monitoring this level closely to gauge the potential direction of the cryptocurrency movement in the coming days.