Ethereum Could Suffer Extended Losses if Support Fails
Author: Ethan GarciaOn the hourly chart, ETH/USD formed a new weekly low of $1807 before starting a consolidation phase. Ethereum presently trades slightly below the $1900 level and the 100-hourly Simple Moving Average. Moreover, a bearish trend line can be spotted elapsing through $1845 on the same chart. This trend line appears to be acting as a formidable obstacle for all of Ethereum’s attempts to overcome.
The key resistance for Ether (ETH) is situated at $1845, which is close to the 50% Fib retracement zone from the recent decline from a peak of $1889 down to $1807. Unless ETH passes $1845, it won’t have the capacity to move beyond the next major resistance at the 61.8% fib retracement level at $1860, followed by $1920. If Ethereum can finally make it above the $1920 mark, it might aim to touch the $2000 - $2080 resistance levels across the near-term given that an uptrend is confirmed.
From a downside angle, the immediate support for Ethereum lies at the $1810 level. It is followed by a crucial floor of $1800, below which Ethereum is almost certain to carry out extensive losses while aiming at the $1765 and $1700 support levels. The MACD and RSI on the hourly chart are currently gaining a bearish momentum while the hourlies RSI is trading below the 50 level. To summarize, Ethereum (ETH) is currently in a bearish state and looking at increased losses if it fails to defend the $1800 support level in the next few hours.