Ethereum Drops 7%, Why ETH Topside Bias Vulnerable


Ethereum gained bearish momentum after it breached the $1,920 support level against the US Dollar. ETH may extend losses if it breaks the $1,760 support level.

  • Ethereum started a new decline after it broke the support level at $1,920.
  • The price is now trading below $1900 and the 100 hourly simple moving average.
  • There was a break below a major contracting triangle with support near $1900 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair tested the support level at $1,760 and remains at the risk of further losses.

Ethereum price reverses gains

Ethereum failed to clear $2000 resistance area. There was a sharp bearish reaction below the support levels at $1,950 and $1,920.

There was a break below a major contracting triangle with support near $1900 on the hourly chart of ETH/USD. The bears pushed the price below the 61.8% Fib retracement level of the upward move from the swing low of $1,705 to the high of $2,015.

Ether price fell below the support level at $1,840 and even fell below $1,800. It tested the next major support at $1,760. It is now correcting gains and trading above $1800. The price is also trading near the 23.6% Fib retracement level of the recent decline from the $2,015 swing high to $1,762.

On the upside, there is an initial resistance near the $1,835 level. next one great resistance It is near the $1,888 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent decline from the $2,015 high to $1,762.

Ethereum price

Source: ETHUSD on TradingView.com

A clear move above the $1,888 level could push the price towards the key resistance at $1,920. Any further gains could lead it towards the $2000 resistance area.

More losses in ETH?

If Ethereum fails to recover above the resistance level at $1,888, it may extend its decline. There is initial support on the downside near the $1,785 region.

The next major support is near the $1,760 level. A bearish breakout below the $1,760 level could push the price towards $1,720. Any further losses could start a move towards the $1,650 level in the near term, where the bulls may emerge.

Technical Indicators

MACD per hourETH/USD’s MACD is losing momentum in bearish territory.

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

Main Support Level – $1,760

Key Resistance Level – $1,888



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