Ethereum Drops 10%, Why ETH May Test $1,500

Ethereum continued to break below the $1,820 support against the US Dollar. ETH tested $1,730 and still faces more downside risks in the near term.

  • Ethereum gained bearish momentum and fell below $1,820.
  • The price is now trading below $1,800 and the 100 hourly simple moving average.
  • A key bearish trend line has formed with resistance near $1,910 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is struggling and remains at risk of falling below $1,700.

Ethereum price rises with bearish momentum

Ethereum remains below $2,000 resistance zone and the 100 hourly simple moving average. As a result, there was a sharp bearish reaction below the $1,920 support.

The bears were able to push the price below $1,820 and $1,800. Prices fell more than 10% to trade below $1,750. A low was formed near $1,727 and the price is now consolidating losses. On the upside, initial resistance lies near $1,770. It is near the 23.6% Fib retracement level of the recent decline from the $1,911 swing high to $1,727 low.

The next major resistance is near $1,820. It is close to the 50% Fib retracement level of the recent decline from the $1,911 swing high to $1,727 low.

The main resistance is currently near $1,920. There is also a key bearish trend line forming with resistance near $1,910 on the hourly chart of ETH/USD. A close above $1,920 could open the doors for steady gains.

Source: ETHUSD on TradingView.com

In the above-mentioned scenario, Ethereum price could rise towards the $2,000 resistance zone. Any more gains could push it towards the key $2,085 resistance zone.

ETH to lose more?

If Ethereum fails to recover above the $1,820 resistance, it could continue to decline. Initial support on the downside is near $1,730.

The next major support is near $1,700.A sort of downside breakout Levels below $1,700 may require another sharp decline. In the aforementioned scenario, the price could drop towards the $1,650 level. Any more losses could call for a move up to $1,500.

Technical indicators

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

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

Major Support – $1,720

Major Resistance – $1,820

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