Ethereum Price Underperforms and Turns At Risk of Downside Break

Ethereum price is struggling to clear the $1,840 resistance against the US Dollar. Bitcoin outperformed ETH, resulting in a risk of a break below $1,740.

  • Ethereum seems to be forming a double top near the $1,840 zone.
  • The price is trading near $1,750 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $1,760 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could decline further if there is a clear move below the $1,740 support.

Ethereum Price Fails To Follow Bitcoin

Ethereum price attempted a fresh increase above the $1,800 resistance zone. However, ETH struggled to clear the $1,840 resistance zone. It faced two rejections and reacted to the downside, unlike bitcoin.

There was a bearish wave below the $1,800 support zone. The bears were able to push the price below 50% Fib retracement level of the upward move from the $1,750 swing low to $1,845 high. Besides, there was a break below a key bullish trend line with support near $1,760 on the hourly chart of ETH/USD.

Ether price is now trading near $1,750 and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $1,770 zone. The next major resistance is near the $1,800 zone.

Source: ETHUSD on TradingView.com

The main resistance is still near the $1,840 zone. A close above the $1,840 resistance zone might start another major increase. In this case, the price may perhaps rise towards the $1,920 resistance level. Any more gains might send the price towards $2,000.

More Losses in ETH?

If ethereum fails to clear the $1,800 resistance, it could continue to move down. An initial support on the downside is near the $1,740 level.

The next major support is near the $1,690 zone or the 1.618 Fib extension level of the upward move from the $1,750 swing low to $1,845 high. If there is a break below $1,690, the price might drop towards $1,615. Any more losses might call for a test of the $1,550 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bearish zone.

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

Major Support Level – $1,740

Major Resistance Level – $1,800