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Ethereum’s price trajectory has taken a bearish turn, raising alarms about a potential extended decline in the near future. Initially, Ethereum exhibited a promising upward movement, peaking beyond the $1,800 mark. However, the tide shifted as it began a downward correction, breaking below critical support levels at $1,850 and $1,820, and most concerningly, falling beneath the $1,800 threshold. This downward movement placed Ethereum below the 100-hourly Simple Moving Average, a significant indicator for technical analysts, hinting at an increased bearish momentum.
Adding to the bearish sentiment is the formation of a key bearish trend line with resistance positioned at the $1,830 level on the hourly chart of ETH/USD. Ethereum’s failure to maintain its stand above the $1,800 level and its struggle to break through immediate resistances suggest that bears have indeed regained control. This shift gains further credibility through the price action moving below the 50% Fibonacci retracement level of the recent upswing from a low of $1,734 to a high of $1,872, implying that the bears are not just passing through but have intentions of a longer stay.
The immediate resistance lying ahead for Ethereum paints a grim picture. If Ethereum fails to surpass the resistance at $1,830, it might not only signal a lack of buying strength but also set the stage for a fresh round of selling. The significant pressure from the bears could drive Ethereum’s price below the current support zone of $1,785, further deepening the bearish outlook. The potential for this movement indicates a stiff challenge for bulls in reclaiming control, especially with Ethereum now trading beneath vital technical thresholds like the 100-hourly Simple Moving Average and facing immediate resistance hurdles.
Should Ethereum fail to reassert itself above these critical levels, the path of least resistance appears to be downwards. The support levels near $1,785 and the subsequent 61.8% Fibonacci retracement level are crucial for preventing further descent. However, if these levels are breached, Ethereum may find its next substantial support around the $1,750 mark, with potential declines extending to $1,720 or even $1,685. This scenario emphasizes the importance of close monitoring of technical indicators such as the Hourly MACD and RSI, which currently underscore the bearish momentum, urging investors and traders to exercise caution and closely watch for any signs of a reversal or continuation of the current trend.
