Key Takeaways:
- Ether price is struggling to hold major support at $1,800.
- ETH/USD is trading below a key bearish trend line with resistance near $1,950 on the daily chart.
- The price could decline heavily if there is a daily close below $1,800.
NEW DELHI (CoinChapter.com) — Ethereum’s ETH is struggling to stay above $1,800. It could either recover toward $1,950 or decline heavily in the coming sessions.
Ethereum (ETH) Price Revisits Crucial Support
Ethereum started a decent increase above the $1,950 resistance zone this past week against the US dollar. However, the ETH/USD pair faced a strong resistance near the $2,000 zone.
The bears defended gains and pushed the price below $1,900. The price is again trading in a bearish zone below the 61.8% Fib retracement level of the main increase from the $1,687 swing low to the $2,146 high.
More importantly, there was a daily close below the $1,900 level and the 50-day simple moving average. The current price action is bearish, similar to Bitcoin below $29,000.
If the bears remain in action, there is a risk of a sharp decline. The first major support is near the $1,800 level (a multi-touch zone). It is close to the 76.4% Fib retracement level of the main increase from the $1,687 swing low to the $2,146 high.
The next major support is near the $1,700 zone. A close below the $1,700 level might open the doors for a sustained decline. Ethereum may decline toward the $1,575 support in the stated case.
Recovery Attempt?
Conversely, the bulls might be able to defend the $1,800 support. On the upside, immediate resistance is near the $1,880 level and the 50-day simple moving average. The first major resistance is near the $1,950 level. A key bearish trend line is forming with resistance near $1,950 on the daily chart.
If Ethereum climbs above the $1,950 resistance, there are chances of a fresh rally. The next major resistance is near the $2,000 level. A clear move above the $2,000 resistance might lead Ether toward the $2,150 zone. Any more gains could open the doors for a test of $2,250.
Overall, Ether price is struggling to stay above crucial support at $1,800. If the bulls fail to protect $1,800, there could be a drop to $1,550. On the other hand, ETH might start a new increase toward $1,950.
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