Ethereum price is struggling to rise above $1,850 against the US Dollar. ETH is likely to decline towards the $1,800 support level in the near term.
Ethereum is trading in a range below the $1,850 and $1,860 resistance levels.
The price is trading below $1,850 and the 100 hourly simple moving average.
There is a key contracting triangle forming with support near $1,840 on the hourly chart of ETH/USD (data source from Kraken).
Failure to close above the $1,860 resistance level could lead to a drop towards $1,800.
Ethereum price drops again
Ethereum price remained below the $1,860 resistance area and reacted to a downtrend. ETH touched near $1,853 and later declined below the $1,840 level, similar to bitcoin.
A low was formed near $1,837 and the pair is currently consolidating losses. It climbed above the 23.6% Fib retracement level of the recent decline from the $1,853 swing high to $1,837 low. Ethereum is currently trading below $1,850 and the 100 hourly simple moving average.
There is also a key contracting triangle forming on the hourly chart of ETH/USD with support near $1,840. On the upside, the price is likely to face resistance near the $1,845 level or the 100 hourly simple moving average.
The 50% Fib retracement level of the recent drop from the $1,853 swing high to $1,837 low is also near $1,845. The first key resistance is near $1,850. The next key resistance is near $1,860. A close above $1,860 could push the price towards $1,880. Any further gains could push the price towards the $1,920 pivot level, above which the price could move towards the $2,000 area.
ETH Loses More?
If Ethereum fails to break the $1,850 resistance, it is likely to continue to decline. An initial support on the downside is near the $1,840 level or the lower trendline of the triangle.
The first major support is near the $1,835 area. If the bulls fail to hold the $1,835 support, more losses could occur. The next major support is near the $1,800 support level. Any more losses could lead the price to the $1,740 level in the near term.
Technical indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently trading below the 50 level.
Major Support Level – $1,835
Major Resistance Level – $1,850