Ethereum Price Falters: Can the Bulls Stage a Comeback?

Ethereum (ETH) has encountered renewed selling pressure, dipping below the crucial $1,880 support level. This downturn follows a failed attempt to breach the $2,000 resistance, leaving the cryptocurrency vulnerable to further losses. Current price action shows ETH consolidating around $1,800, trading below both the $1,880 level and the 100-hourly Simple Moving Average.

Technical analysis reveals a concerning bearish trend line forming on the hourly chart, with resistance pinned at $1,820 (Kraken data). For bulls to regain control, a decisive break above both $1,820 and $1,880 is essential. Failure to do so could signal a continuation of the downtrend.

A Closer Look at the Chart:

The recent decline saw ETH test the $1,765 support zone, briefly finding a low at $1,767 before attempting a recovery above $1,800. However, this rebound stalled below the 23.6% Fibonacci retracement level of the recent swing high at $2,033 and swing low at $1,767.

Resistance and Support Levels:

• Resistance: $1,820, $1,880 (50% Fib retracement), $1,920, $2,000, $2,050, $2,120
• Support: $1,780, $1,765, $1,720, $1,680, $1,650

Technical Indicators Signal Caution:

Both the hourly MACD and RSI are showing bearish signals. The MACD is losing momentum in bearish territory, while the RSI remains below the 50 level, suggesting further downside potential.

The Outlook:

The short-term outlook for Ethereum remains uncertain. A sustained break above $1,880 could spark a rally towards $2,000 and beyond. Conversely, failure to clear this resistance level could trigger another leg down, potentially targeting the $1,765 and lower support levels. Traders should closely monitor price action around these key levels and the technical indicators for clearer directional signals.