Ethereum Drops 5% Below $1,800, Tests $1,750 Support

Ethereum's price has recently experienced a downward correction, falling below the $1,800 level. The cryptocurrency is currently testing the $1,750 zone and may dip further towards $1,700. This correction follows a period of stability above the $1,720 level, during which Ethereum traded above $1,750 and $1,780, even reaching a high near $1,850. However, the price has since started a downward trend, breaking below a connecting bullish trend line with support at $1,800 on the hourly chart of ETH/USD.

The bulls are now active near the 76.4% Fib retracement level of the upward move from the $1,723 swing low to the $1,848 high. Ethereum is currently trading below $1,780 and the 100-hourly Simple Moving Average, facing hurdles near the $1,775 level. The next key resistance is near the $1,800 level, with the first major resistance near the $1,820 level. A clear move above the $1,820 resistance might send the price toward the $1,850 resistance. An upside break above the $1,850 resistance might call for more gains in the coming sessions, potentially rising toward the $1,920 resistance zone or even $2,000 in the near term.

However, if Ethereum fails to clear the $1,800 resistance, it could start a fresh decline. Initial support on the downside is near the $1,750 level, with the first major support sitting near the $1,700 zone. A clear move below the $1,700 support might push the price toward the $1,650 support. Any more losses might send the price toward the $1,620 support level in the near term, with the next key support sitting at $1,550.

Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bearish zone, while the RSI for ETH/USD is now below the 50 zone. The major support level is at $1,750, with the major resistance level at $1,800. This downward correction raises questions about whether it is a temporary breather or a trend shift for Ethereum's price. The cryptocurrency's ability to regain momentum and break above key resistance levels will be crucial in determining its future price movements.