Ethereum (ETH) continues its bearish trend as the second-largest cryptocurrency struggles to maintain crucial support levels. Recent price action shows ETH facing significant downward pressure, with bears gaining control below the critical $1,820 mark. This decline coincides with Ethereum network activity hitting 2020 lows, suggesting broader fundamental weakness in the ecosystem.
Technical Analysis Shows Mounting Bearish Pressure
The current price action reveals several concerning technical indicators:
- Price trading below both $1,840 and the 100-hourly Simple Moving Average
- Formation of a bearish trend line with resistance at $1,810
- Failed recovery attempt above the 23.6% Fibonacci retracement level
- RSI remaining below the 50 zone, indicating bearish momentum
Critical Support and Resistance Levels
Traders should monitor these key price levels:
| Type | Level | Significance |
|---|---|---|
| Major Support | $1,750 | Critical floor price |
| Secondary Support | $1,720 | Next downside target |
| Major Resistance | $1,850 | Key breakout level |
| Secondary Resistance | $1,880 | Recovery confirmation |
Potential Scenarios and Trading Implications
Two primary scenarios are emerging:
Bearish Case
If ETH fails to reclaim $1,850, expect:
- Initial drop to $1,765
- Further decline to $1,720 support
- Possible extension to $1,680 in severe cases
Bullish Case
For recovery, ETH needs to:
- Break above $1,880 resistance
- Target $1,920 as first objective
- Potentially reach $2,000-$2,050 range
FAQ
What’s causing Ethereum’s current price decline?
The decline is attributed to broader market weakness, reduced network activity, and technical selling pressure below key moving averages.
When might ETH price recover?
Recovery signals would include breaking above $1,880 with increased volume and improved network metrics.
What’s the worst-case scenario for ETH?
If $1,750 support breaks, ETH could test lower supports at $1,680 or even $1,620.
Time to read: 4 minutes