Ethereum price is gaining bearish momentum below the $1,885 resistance against the US Dollar.
ETH is the native token of the Ethereum blockchain, created by Vitalik Buterin. The long-term outlook for ETH is somewhat hazy.
The ETH price is now trading below $1,885, and the 55 simple moving average (4 hours). There was a break below a key uptrend line with support at $1,885 on the 4-hour chart, according to Coinbase. The pair could rally but is likely to face sellers near the $1885 resistance zone.
The Ethereum price is dipping below $1,885 against the US Dollar. ETH/USD remains at risk of further downside below the $1,800 support zone.
Ethereum Price Analysis
Last week, Ethereum struggled to clear the $2,020 resistance zone against the US Dollar. ETH’s price struggled to gain pace above the $2,000 level and reacted lower.
The recent high was formed near $2,020 and the price started a new decline. There was a dip below the $1,920 and $1,885 support levels. The pair even spiked below the $1,820 support. A low is formed near $1,810 and the price is now consolidating losses.
It is now trading below $1,885 and the 55 simple moving average (4 hours). On the upside, the price is now facing resistance near the $1,860 level. It is close to the 23.6% Fibonacci retracement level of the recent drop from the $2020 high to the $1810 low.
The next major resistance is near the $1,885 level above which could test the 50% Fibonacci retracement level of the recent drop from the $2,020 high to the $1,810 low.
The next major resistance is near the $1,970 area. A clear move above the $1970 and $1980 resistance levels could require a further move to $2020. Further gains could even send the price toward the $2,120 or even the $2,200 resistance zone in the near term.
On the downside, the initial support is near the $1800 level. The next major support is now near the $1,775 level. A break below the $1775 support could take the price to $1720. If the bulls fail to protect the $1,720 support, the price could drop to $1,650.
The Ethereum price is trading below $1,885 and the 55 simple moving average (4 hours). Overall, Ether’s price could rally but it is likely to face sellers near the $1885 resistance zone.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
4 Hours RSI (Relative Strength Index) – The RSI for ETH/USD is now below the 50 level.
Key support levels: $1,800, followed by the $1,775 zone.
Key resistance levels $: $1,885 and $1,915.
To conclude, it should be noted that Ethereum is undergoing a period of significant transformation that began with The Merge last September when it transitioned to Proof-of-Stake (PoS) consensus. Once The Surge becomes available after Dencun, Ethereum will experience three other major upgrades in the form of The Verge, The Purge, and The Splurge.
The Verge will introduce Verkle trees and stateless clients to lighten Ethereum and enforce decentralization. Vitalik Buterin, Ethereum co-founder and chief scientist, said that after The Verge, users will be able to launch nodes “without having hundreds of gigabytes on their drive.”
By Audy Castaneda
