Ethereum price is trading above $1,780 at the time of writing but downward pressure is likely to dip prices to $1,400—$1,250 range
Ethereum price has declined below $1,800 after bulls failed to rally above the $1,850 resistance level. The ETH/USD pair is trading around $1,788, which is above the $1,750 support level. Bulls might rebound off the support level and retest the intraday high of $1,842 as they look to break higher.
However, a technical pattern formation charted on the daily chart shows ETH/USD may see significant pressure and decline towards $1,700 or lower.
Ethereum price bearish flip
ETH/USD has traded with higher highs and high lows on the daily chart since breaking off lows of $985 on 13 January. The cryptocurrency even touched a new all-time high of $2,040 on 20 February. It however dipped to $1,290 on 28 February before resuming the upside that took it above $1,800.
Charting trend lines on the above swing points show that ETH/USD has been trading within an ascending broadening wedge.
As can be seen on the chart below, the pair bounced off the lower trend line on 1 March. Bears revisited the support zone on 5 March, with bulls’ attempts to move to the upper trend line curtailed once again this week.
The technical picture of the ascending broadening wedge suggests bears might eye a retest of the lower trend line. To do this, sellers will need to breach $1,750 and then target the 20-day EMA ($1,696).
The short-term bearish outlook is aided by the RSI that’s trending with a negative divergence. The daily MACD remains in the bullish zone but trends with a hint of weakness among bulls. If buyers fail to strengthen towards $1,800, a short-term dip could be more than likely.
In this case, further declines below the 20-day EMA will allow bears to target the wedge’s support line around $1,526. If such a scenario unfolds, ETH/USD could plummet further towards $1,400 and then $1,250.
Ethereum price upside potential
Although the chart suggests ETH faces a fresh decline below $1,800, bulls will likely defend any losses near the $1,780—$1,750 levels. Beyond these levels, bears will have to negotiate a huge demand wall near $1,700 if they want to cause further damage.
Contrary to this, buyers can bounce off resistance around intraday highs and seek a higher close on the daily log. If this happens and upward pressure takes ETH/USD past the horizontal barrier at $1,880, fresh momentum could allow for a retest of $2,000 and see bulls target a new all-time high.
Above this level, bulls can target a run to the upper trend line of the ascending broadening wedge.