Ethereum Price Prints Bearish Technical Pattern, Why It Could Extend Losses

2023-08-16 05:18:56

Ethereum price is moving lower below the $1,850 zone against the US Dollar. ETH could extend losses and trade below the $1,800 support.

Ethereum is slowly moving lower below the $1,850 and $1,840 resistance levels.
The price is trading below $1,840 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance near $1,835 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could drop further below the $1,800 support in the near term.

Ethereum Price Turns Red

Ethereum’s price struggled to recover above the $1,860 resistance zone. ETH remained in a bearish zone and extended its decline below the $1,850 level, similar to Bitcoin.

There was a clear move below the $1,830 support and the price declined toward $1,800. A low is formed near $1,811 and the price is now consolidating losses. There was a recovery wave above the $1,820 level. The price climbed above the 23.6% Fib retracement level of the recent decline from the $1,854 swing high to the $1,811 low.

Ether is now trading below $1,840 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance near $1,835 on the hourly chart of ETH/USD.

On the upside, the price might face resistance near the $1,835 level or the trend line. It is close to the 50% Fib retracement level of the recent decline from the $1,854 swing high to the $1,811 low. The next resistance is near $1,840 or the 100-hourly Simple Moving Average.

Source: ETHUSD on TradingView.com

The first key resistance is near the $1,850 level. The next key resistance is near the $1,860 level. A close above the $1,860 level could start a decent increase toward $1,900. Any more gains might send the price toward the $1,920 pivot level, above which the price could rise toward the $2,000 zone.

More Losses in ETH?

If Ethereum fails to clear the $1,840 resistance, it could continue to move down. Initial support on the downside is near the $1,810 level.

The first major support is near the $1,800 zone. If the bulls fail to protect the $1,800 support, there could be more losses. The next major support is near the $1,760 support level. Any more losses might send the price toward the $1,720 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,800

Major Resistance Level – $1,850

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