Ethereum price is struggling to clear the $1,850 and $1,880 resistance levels against the US Dollar. ETH could start a decent increase unless it closes below $1,800.
- Ethereum is currently moving lower off the $1,880 resistance zone.
- The price is trading below $1,850 and the 100-hour Simple Moving Average.
- A major bearish trendline is forming with resistance near $1,840 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could start a decent increase if there is a move above the USD 1,840 and USD 1,880 resistance levels.
Ethereum price faces hurdles
Ethereum price attempted to make a decent gain above the $1,850 resistance zone. However, ETH faced a strong rejection near the $1,880 zone, similar to Bitcoin.
The price dropped sharply below the $1,850 level. It traded as low as $1,792 before recovering to $1,865. A high is formed near $1,865 and the price is now moving lower. It traded below the 50% Fib retracement level of the upward move from the $1,792 swing low to the $1,865 high.
Ether is now trading below $1,850 and the 100-hour Simple Moving Average. A major bearish trendline is also forming with resistance near $1,840 on the ETH/USD hourly chart.
Source: ETHUSD at TradingView.com
Immediate resistance is near the $1,835 level. The next resistance is near USD 1,840, above which Ethereum could test the 100-hour Simple Moving Average. The main resistance is now forming around the USD 1,880 level. A close above the $1,880 resistance zone could start a decent rise towards the $1,920 resistance. More gains could push the price towards the $1,975 resistance.
Interruption in ETH?
If Ethereum fails to clear the $1,840 resistance, it could drop further. The initial support on the downside is near the $1,820 level or the 61.8% Fib retracement level of the upward move from the $1,792 swing low to the $1,865 high.
The next major support is near the $1,800 zone. If there is a downside break and closes below $1,800, the price could drop sharply. In the said case, the price may decline towards the $1,740 support zone. More losses may push the price to the $1,650 level in the near term.
Technical indicators
MACD per hour – The MACD for ETH/USD is now gaining momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is below the 50 level.
Major Support Level – $1,800
Major resistance level – $1,840
