Ethereum Price Recovery Could Soon Fade If ETH Fails To Surpass $1,850

2023-05-16 04:10:48

Ethereum price is struggling below the $1,840 resistance against the US Dollar. ETH could face bearish moves if there is a break below the $1,800 support.

Ethereum is currently facing a strong barrier near the $1,850 resistance zone.
The price is trading below $1,820 and the 100-hourly Simple Moving Average.
There is a key rising channel forming with support near $1,800 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a steady decline if there is a clear move below the $1,800 support.

Ethereum Price Faces Uphill Task

Ethereum’s price started a decent upward move from the $1,750 support zone. ETH climbed higher above the $1,800 and $1,820 resistance levels, similar to Bitcoin.

However, the bears were active near the $1,840 and $1,850 resistance levels. A high is formed near $1,847 and the price is now moving lower. There was a drop below the $1,825 and $1,820 levels. The price declined below the 50% Fib retracement level of the upward move from the $1,785 swing low to the $1,847 high.

Ether price is now trading below $1,820 and the 100-hourly Simple Moving Average. There is also a key rising channel forming with support near $1,800 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

Immediate resistance is near the $1,820 level or the 100 hourly SMA. The next resistance sits near $1,850, above which Ethereum could gain bullish momentum and rise toward $1,920. If there is a move above the $1,920 resistance level, the price might rise toward the $2,000 level. Any more gains above the $2,000 resistance zone could start a decent increase toward the $2,050 resistance.

More Losses in ETH?

If Ethereum fails to clear the $1,850 resistance, it could continue to move down. Initial support on the downside is near the $1,800 level and the 76.4% Fib retracement level of the upward move from the $1,785 swing low to the $1,847 high.

The next major support is near the $1,790 zone. If there is a clear move below the $1,790 support, the price could gain bearish momentum. In the stated case, the price might drop toward the $1,740 support zone. Any more losses may perhaps take the price toward the $1,650 level in the near term.

Technical Indicators

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

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

Major Support Level – $1,800

Major Resistance Level – $1,850

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