Ethereum has seen a significant drop against the US dollar, well over USD 1,850. ETH price is trading near the key support of $ 1,700, below which it could drop sharply.
- Ethereum continued to fall below the USD 1,800 and USD 1,750 support levels.
- The price is now trading well below $ 1,800 and the 100 hour simple moving average.
- A large bearish trendline is forming on the hourly chart of ETH / USD (data feed via Kraken) with resistance near USD 1,820.
- The pair could fall sharply if it does not stay above $ 1,710 and $ 1,700.
The Ethereum price holds the key support
Ethereum failed to move back above the $ 1,850 level and extended its decline similar to Bitcoin. ETH broke the USD 1,800 support zone to move further into a bearish zone.
The price even broke the $ 1,750 support and was well below the 100-hour simple moving average. However, the bulls are now protecting the main USD 1,700 support zone. A low is formed near $ 1,712 and Ether is now consolidating losses.
Initial resistance to the upside is near the $ 1,765 level. It is near the 23.6% fib retracement level of the downward move from the high of $ 1,944 to the low of $ 1,712.
Source: ETHUSD on TradingView.com
On the upside, the first key resistance is forming near the $ 1,800 level and the 100-hour simple moving average. A large bearish trendline is also forming on the hourly chart of ETH / USD with resistance near USD 1,820. The trendline is close to the 50% Fib retracement level of the downward move from the high of $ 1,944 to the low of $ 1,712.
To get into a positive zone, the ether price must eliminate trendline resistance and $ 1,800. A closing price above $ 1,800 and the 100-hour SMA could see a steady rise.
Further losses in ETH?
Unless Ethereum corrects higher than the USD 1,765 and USD 1,800 resistance levels, it could correct further lower. The first major support is near the $ 1,710 level.
The main support is now forming near the USD 1,700 level. If the downside support is below the USD 1,700 support, there is a risk of a nasty decline. In the given case, the ether price could drop towards 1,600 USD or even 1,550 USD.
Hourly MACD – – The MACD for ETH / USD is slowly losing pace in the bearish zone.
Hourly RSI – – The RSI for ETH / USD is now well below the 50 level.
Main support tier – $ 1,700
Main Resistance Level – $ 1,800