"The inability to break above the $1,900 mark signals a faltering momentum," said a trader following Ethereum's price action on August 3. Ethereum slipped about 2%, settling near $1,847 after hitting an intraday low of roughly $1,828. This drop extends the token's slide from its late July peak around $1,975, highlighting persistent resistance between $1,950 and $1,975 where buyers have repeatedly failed to maintain control.
The cryptocurrency briefly bounced off the $1,828 support but stalled near $1,850, leaving it precariously close to the critical $1,800 $1,850 support zone. Ethereum now trades below its 50-day and 100-day moving averages, positioned at $1,889 and $1,927 respectively, with the 200-day average further away at $2,089. The repeated rejection near these averages underlines a defensive setup with sellers regaining dominance after recent attempts to push higher.
Technical indicators shows this cautious outlook. The 4-hour MACD remains negative, hovering near -10.46, while the signal line is close at -9.92, reflecting weak upward momentum. Meanwhile, the Chaikin Money Flow reading at -0.14 points to selling volumes outpacing buying pressure. Adding to the bearish tone, decreasing Binance stablecoin inflows suggest a tightening of liquidity, potentially limiting the capital ready to support upward moves on the exchange.
If Ethereum falls decisively below $1,800, further declines targeting $1,785 and possibly $1,700 could come into view. This scenario would confirm a more extended bearish trend following lower highs since late July. Traders should watch these levels closely as Ethereum's short-term outlook grows more uncertain amid waning demand and persistent resistance.
This material is for informational purposes only and does not constitute financial advice.
