The Ethereum price has encountered a correction phase after struggling to break through the resistance levels at $1,875 and $1,880 against the US Dollar. Similar to Bitcoin, Ethereum experienced a gradual decline below the $1,850 pivot level.
If the bearish trend continues, Ethereum could drop towards the $1,820 support level. This critical juncture is where the bulls might regain control and attempt to push the price back up. Failure to defend the $1,820 support could result in a significant plummet towards the $1,800 level.
The bears managed to push the Ethereum price below the 23.6% Fibonacci retracement level of the key increase from the $1,800 swing low to the $1,876 high. Furthermore, the price fell below the 100-hourly Simple Moving Average, indicating a bearish signal for Ethereum.
Amidst the downward correction, a bullish flag pattern is emerging with resistance near $1,855 on the hourly chart of ETH/USD. This pattern suggests that a potential breakout to the upside could occur if the resistance is breached.
The first major resistance to overcome is at the $1,872 level, followed by the key resistance level at $1,880. If Ethereum manages to close above $1,880, it could signify a higher probability of a steady increase towards $1,920. Subsequent gains could potentially push the price towards the $2,000 hurdle, with further upward momentum aiming for levels around $2,040 and even $2,120.
Should Ethereum fail to surpass the resistance at $1,855, the bearish momentum might persist. The initial support on the downside is anticipated at the $1,840 level or the 50% Fibonacci retracement level of the key increase from the $1,800 swing low to the $1,876 high. The first major support lies near the $1,830 zone or the channel lower trend line. However, if the bulls are unable to protect the $1,820 support, a sharp decline is possible. The subsequent significant support rests near the $1,800 psychological level.
Analyzing the technical indicators, the hourly Moving Average Convergence Divergence (MACD) shows a loss in bullish momentum for ETH/USD, indicating a potential downward movement in the near term. The Relative Strength Index (RSI) for the same timeframe is now below the midpoint of 50, displaying a shift towards a bearish sentiment.
Ethereum’s price is experiencing a correction phase after failing to surpass resistance levels. If the bears continue to dominate, the price could potentially drop towards the $1,820 support level. However, if the bulls manage to regain control and overcome the resistance at $1,855, a bullish breakout could occur. Traders and investors should closely monitor the key support and resistance levels mentioned above to gain insights into the future trajectory of Ethereum price.