Ethereum Drops 7%, Why ETH Topside Bias Vulnerable

After breaking the $1920 support for the US dollar, Ethereum experienced bearish momentum. If it breaches the $1,760 support, ETH could take further losses.

  • Ethereum experienced a sharp decline following the break of $1,920.
  • The 100-hourly simple moving average and price are now below $1900.
  • The hourly chart for ETH/USD showed a break below the major contracting triangle, with support close to $1,900 (data feed via Kraken).
  • This pair has tested $1760 support, and there is still a chance of further losses.

Ethereum price reverses gains

Ethereum was unable to break the $2,000 resistance level. Below the $1,950 support level, there was a strong bearish reaction.

On the hourly chart, ETH/USD saw a dip below the support level of $1900. Bears drove the price lower than the 61.8% Fib Retracement level for the upward movement from $1,705 swing lows to $2,015 highs.

Ether prices fell below the $1840 level and dropped below $1800. At $1,760 it tested its next support. The price is currently trading at $1,800 and has corrected its gains. It is trading close to the 23.6% Fib Retracement level, which marks the decline in price from $2,015 swing high, $1,762 low.

The upside is that the first resistance level for the market is at the $1,835 mark. Near the $1,835 level and 100-hourly simple moving average is the next significant resistance. This is close to the Fib retracement of the decline from $2,015 high to $1,762 low.

Ethereum Price

Source: TradingView.com, ETHUSD

The price could move towards the $1920 resistance zone if it moves above that level. It could move towards the $2,000 resistance zone with any additional gains.

What Are the Losses of ETH More?

It could continue its slide if it fails to overcome the $1,888 resistance. Initial support for the downside lies near the $1785 zone.

Next major support will be near the $1760 level. The price could move towards $1720 if it breaks below $1760. A move toward the $1,650 mark in the immediate term could be initiated by any more losses. This is where the bulls may come out.

Technical indicators

Hourly MACDMACD for USD/ETH is losing momentum now in the bearish area.

Hourly RSIThe RSI is currently below 40 for USD/ETH.

Major Support Level – $1,760

Major Resistance Level – $1,888

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