Ethereum Price’s Downward Trend Continues: Insights and Analysis

In recent trading trends, Ethereum price’s trajectory appears to be on a worrying slide, as it extended its declining trend below the $1,900 benchmark against the US Dollar. Current observations show that Ethereum is testing support at a level around $1,825, as Ethereum enthusiasts watch with bated breath whether the digital coin can make a fresh, upward rally.

Snapshot of Ethereum’s Performance

Some quick highlights of Ethereum’s recent price performance include:

• Ethereum’s price movement has been downwards by more than 2%, with bracing shift below the threshold of $1,900.
• Its price is trading below $1,890 and more notably, under the 100-hourly Simple Moving Average.
• There was also a noted break below a previous bullish trend line that had support pegged at near $1,905. This observation is based on the hourly chart of ETH/USD, data fed through Kraken.
• The ETH/USD pair may attempt a fresh increase, but any upswing may face a ceiling near the $1,900 mark.

Deep Dive into Ethereum’s Current State

Over the past trading period, Ethereum’s price has struggled to gain momentum above the $1,955 resistance level. The price decline mirrored that of Bitcoin, as ETH began another slide that took it below a crucial support point–$1,900.

A deeper analysis reveals that the price drop went beyond the $1,850 level. Additionally, a break was noted below a formerly bullish trend line, the support for which was around $1,905 on the hourly chart specific to ETH/USD. On the flip side, the bulls seemed to rally near the last pivot zone priced at $1,825. This level seems to be the low point thus far, as the price attempts an upswing from this position.

Here is a graphical representation of this data:

Source: ETHUSD on TradingView.com

Challenges to Overcome

For any significant upward movement, the immediate resistance Ethereum faces is near the $1,855 level. This is worryingly close to the 23.6% Fib retracement level of the downturn from the $1,955 swing high to the $1,825 low.

The first major resistance level is $1,890 or the 100-hourly Simple Moving Average. This is followed by a resistance level close to $1,905, corresponding to the 61.8% Fib retracement level of the recent drop spanning from $1,955 down to $1,825.

A successful surge beyond the $1,905 resistance could propel the price towards $1,955. Subsequent resistance levels are near $1,975 first, and eventually the $2,050 mark if the trend continues upward.

What to expect if Ethereum Can’t Overcome Resistance?

If Ethereum can’t surmount the $1,855 or $1,890 resistance levels, it could continue a downward trend. The initial support level on the downside is hovering near the $1,840 mark, with the major support stationed at $1,825. Further below, the subsequent major support is near the $1,770 segment.

If Ethereum slides below the $1,770 support, the price may fall towards a lower support level at $1,720.

Technical Indicators

Current technical indicators suggest a bearish momentum for ETH/USD are:

• Hourly MACD – The MACD for ETH/USD is losing momentum going from a bullish to a bearish trend.
• Hourly RSI – The RSI for ETH/USD is now hovering below the central pivot point, marked at 50.

The major support level is near $1,825 while the major resistance level stands at $1,890.