Ethereum Drops 12% in Six Days, Tests $1,765 Support
2min read Ethereum (ETH) has been experiencing a downward trend over the past week, with its price struggling to maintain momentum above key support levels. The cryptocurrency, which is the second-largest by market cap, is currently trading around $1,800, marking a 12% decline over the past six days. This decline began after ETH failed to break through the $2,100 resistance level, leading to a series of bearish price actions that pushed the price below several important support zones.
The price movement shows that ETH initially dropped below the $1,920 support level. It then continued to decline, breaking the $1,880 level, which had previously served as a stable floor. The decline brought Ethereum to test the $1,765 zone, where a low formed at $1,767 before the price attempted to bounce back above $1,800. Despite this small recovery, ETH remains below the 23.6% Fibonacci retracement level, calculated from the recent decline from the $2,033 swing high to the $1,767 low.
Technical analysis indicates that ETH is trading below the 100-hourly Simple Moving Average, a bearish signal for traders and market analysts. A connecting bearish trend line has formed with resistance at $1,820 on the hourly chart, adding another hurdle for bulls attempting to push the price higher. On the upside, the price faces several resistance barriers, with the first near the $1,820 level, followed by a stronger resistance at $1,880. The $1,880 resistance also coincides with the 50% Fibonacci retracement level. Breaking above this could open the path toward the $1,920 level. If buyers manage to push the price above $1,920, ETH could target the psychological $2,000 level, with potential gains reaching $2,050 or even $2,120.
However, if Ethereum fails to clear the $1,880 resistance, another decline could follow. The first support on the downside sits near $1,780. Below that, the major support is at $1,765, which was recently tested. A break under this level could send the price toward $1,720 or even lower to $1,680. The technical indicators aren’t painting a bullish picture at the moment. The MACD for ETH/USD is losing momentum in the bearish zone, and the RSI (Relative Strength Index) for ETH/USD remains below the 50 zone, suggesting bears still have control of the market in the short term.
Some analysts see a potential double-bottom pattern forming, which could signal a reversal if ETH bounces strongly from current levels. The daily chart shows six consecutive bearish candles, but price action near the $1,762 support level indicates possible bullish interest forming. A potential Doji candle formation suggests indecision in the market, which could mark the beginning of a double-bottom reversal pattern. For this reversal to complete, Ethereum would need to break above the local resistance trendline. The neckline of the double-bottom pattern sits near the $2,100 resistance level.
Adding pressure to the market, crypto whales face liquidation risks. Two large holders on Maker DAO control 125,603 ETH worth approximately $229 million. These positions face liquidation at price levels of $1,787 and $1,701. If triggered, these liquidations could accelerate ETH’s downward movement. Despite the current bearish outlook, some analysts remain optimistic, pointing to ETH holding the lower boundary of a descending triangle pattern. A bounce from current levels could challenge resistance at $1,950 and $2,080, with more optimistic targets including $2,230 and $2,320 if momentum shifts. The short-term price action shows rejection from the 24-hour low, suggesting a potential bounce, but the market remains highly uncertain.
Ask Aime: What do analysts think about Ethereum's potential double-bottom pattern?
