Ethereum Price Tumbles: Could Drop Below $1,700
• Ethereum price has started a fresh decline below $1,920 against the US Dollar.
• ETH is now trading below $1,850 and the 55 simple moving average (4 hours).
• If the bulls fail to protect the $1,700 support, the price might decline further towards $1,650.
Ethereum Price Analysis: Could Drop Below $1,700
Bearish Momentum Below Resistance Level
Ethereum price is facing bearish momentum below the resistance level of $1,880 against the US Dollar. The pair is now trading below $1,850 and the 55 simple moving average (4 hours). Moreover, there was a break above a key bearish trend line with resistance near $1,820 on the 4-hour chart (data feed from Coinbase).
Risk of More Downsides
The risk of more downsides remains if Ethereum stays below $1,850 and $1,880. On the upside, initial resistance lies at around $1,850 level. The next major resistance is near the level of 50% Fib retracement ($1,880) from downward move from swing high ($2,020) to low ($1737). A clear move above this could call for a fresh move to reach up to levels near or above $2K.
Support Levels At Risk
On downside however initial support lies at around$ 1 780 levels which if breaks could push prices down towards next major support at levels close to or around$ 1 700. Any further breakage in price could lead ETH/USD pair towards lower levels of$ 1 650 or even lower as suggested by technical indicators such as MACD and RSI which both indicate bearishness in market sentiment.
Conclusion
To conclude it can be said that Ethereum’s price may continue to move down if it stays below critical support and resistance levels i.e.,$ 1 850 &$ 1 880 respectively .It would be interesting to see how new developments such as EIP 1559 affect its prices going forward as well as if any other factors have an influence on them in future .