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TA: Ethereum Drops 7%, Why ETH Topside Bias Vulnerable

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Ethereum gained bearish momentum after it broke the $1,920 support against the US Dollar. ETH might extend losses if it breaks the $1,760 support.

  • Ethereum started a fresh decline after it broke the $1,920 support.
  • The price is now trading below $1,900 and the 100 hourly simple moving average.
  • There was a break below a major contracting triangle with support near $1,900 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair tested the $1,760 support and remains at a risk of more losses.

Ethereum Price Reverses Gains

Ethereum failed to clear the $2,000 resistance zone. There was a sharp bearish reaction below the $1,950 and $1,920 support levels.

There was a break below a major contracting triangle with support near $1,900 on the hourly chart of ETH/USD. The bears pushed the price below the 61.8% Fib retracement level of the upward move from the $1,705 swing low to $2,015 high.

Ether price declined below the $1,840 support and even dived below $1,800. It tested the next major support at $1,760. It is now correcting gains and trading above $1,800. The price is also trading near the 23.6% Fib retracement level of the recent decline from the $2,015 swing high to $1,762 low.

On the upside, an initial resistance is near the $1,835 level. The next major resistance is near the $1,888 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the $2,015 swing high to $1,762 low.

Ethereum Price

Source: ETHUSD on TradingView.com

A clear move above the $1,888 level might push the price towards the main resistance at $1,920. Any more gains may perhaps send it towards the $2,000 resistance zone.

More Losses in ETH?

If ethereum fails to recover above the $1,888 resistance, it could extend its decline. An initial support on the downside is near the $1,785 zone.

The next major support is near the $1,760 level. A downside break below the $1,760 level might send the price towards $1,720. Any more losses could initiate a move towards the $1,650 level in the near term, where the bulls might emerge.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now losing momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 40 level.

Major Support Level – $1,760

Major Resistance Level – $1,888

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