Ethereum Price is Plunging, But It's Too Early to Say Uptrend Is Over

Ethereum Price is Plunging, But It's Too Early to Say Uptrend Is Over

May 2, 2023

Ethereum price extended its decline below the $1,850 level against the US Dollar. ETH could continue to move down if it stays below the $1,880 resistance.

  • Ethereum remained in a bearish zone and traded below $1,850.
  • The price is trading below $1,850 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 continue to move down if it stays below $1,850 and $1,880.

Ethereum Price Extends Decline

Ethereum’s price settled below the $1,880 pivot level to move into a bearish zone. ETH extended its decline and traded below the $1,850 support, similar to Bitcoin at $28,000.

The price traded close to the $1,800 level. A low is formed near $1,805 and the price is consolidating losses. It is trading below $1,850 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.

Immediate resistance is near the $1,835 level and the trend line. It is close to the 23.6% Fib retracement level of the downward move from the $1,940 swing high to the $1,805 low.

The next major resistance seems to be forming near $1,880 and the 100-hourly Simple Moving Average. The 50% Fib retracement level of the downward move from the $1,940 swing high to the $1,805 low is also near the $1,880 level.

Source: ETHUSD on TradingView.com

A close above the $1,880 level might start a fresh increase. In the stated case, the price could rise toward the $1,920 resistance. Any more gains could send Ether toward the $1,940 resistance. The main hurdle is now forming near the $2,000 zone, above which the price could gain bullish momentum.

More Losses in ETH?

If Ethereum fails to clear the $1,835 resistance, it could continue to move down. Initial support on the downside is near the $1,800 level.

The next major support is near the $1,780 zone, below which ether price might drop toward the $1,740 support zone. Any more losses may perhaps take the price toward $1,700 in the near term.

Technical Indicators

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

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

Major Support Level – $1,800

Major Resistance Level – $1,880

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