Can Crypto Bulls Save the Day? Ethereum Price Challenging Uptrend Support!

Introduction: Overview of Recent Ethereum Price Movements

The value of Ethereum – the world’s second-Largest cryptocurrency, recently started a corrective shift downwards, sinking below the $1,950 level against the United States Dollar. Currently, Ethereum is testing a crucial support mark hovering around $1,900 and certain bearish characteristics are becoming increasingly visible with this downward price correction.

Key Developments:

1. Ethereum is undergoing a phase of corrective shrinking, descending below the $1,950 region.
2. At present, the cryptocurrency is trading beneath $1,940 and the 100-hourly Simple Moving Average.
3. A significant bearish trend line is taking shape with a resistance near $1,925 observable in the hourly chart of ETH/USD using data obtained from Kraken.
4. Ethereum might witness another upward surge unless there’s a sealed downtrend under $1,900 shortly.

The Correction Phase in Ethereum’s Price

Ethereum was unable to clear the hurdle at the $1,975 level, prompting the beginning of a downward correction. This shift pushed Ethereum’s price below the $1,950 mark, in line with a similar shift seen for Bitcoin. This cascading dip below the $1,950 level marked a decline by a significant margin.

Specific Developments:

• The price moved under the $1,920 support level.
• Eventually, the price plummeted below the $1,900 mark, setting a new low at around $1,894.
• The cryptocurrency is now consolidating its losses, with the present trading value near the 23.6% Fibonacci retracement level measured from a descent from the $1,974 high to the $1,894 low.

Ethereum’s Bearing Trend and Market Resistance

Ethereum is trading below $1,940, the 100-hourly Simple Moving Average, with a visible bearish trend line and resistance around $1,925 as per the hourly chart of ETH/USD.

• Direct resistance is spotted near the $1,925 level and the 100-hourly Simple Moving Average.
• The next solid resistance is around the $1,945 level, adjacent to the 61.8% Fibonacci retracement level measured from the dive from the $1,974 peak to the $1,894 trough.
• A confident surge above the $1,945 resistance may carry the price toward $1,975.

Potential for More Losses in ETH

Continuous failure to clear the $1,925 resistance, and alternatively, the $1,945 mark could sustain the downward trend. Initial support on the downside is near the $1,900 level.

Major Support Levels:

1. The first major support is spotted around the $1,870 level.
2. Following this, the subsequent noteworthy support is around the $1,820 level.
3. If a decline below the $1,820 support occurs, the price could tumble toward the $1,770 support base.

Technical Indicators for Ethereum

• Hourly MACD – The Moving Average Convergence Divergence for ETH/USD is losing momentum in the bearish zone.
• Hourly RSI – The Relative Strength Index for ETH/USD is currently below the 50 level, indicating a bearish market.
• Major Support Level – $1,900
• Major Resistance Level – $1,945

Source: ETHUSD on TradingView.com