The price of Ethereum fell below US$1900. Can the US$1850 be held?

The price of Ethereum fell under pressure after falling below US$2000, and the key support level is facing a test.

On July 31, the price of Ethereum fell nearly 2% to approximately US$1883 after another failed attack on US$2000. The weakening momentum pushed the token to key technical support areas.

Summary

The daily chart of Ethereum prices was around US$1883, a decrease of 1.8%. The 4-hour Relative Strength Index (RSI) fell to 43.02, indicating a weakening of short-term momentum. Support is in the $1873 to $1875 range, and deeper liquidity is around $1850. Clearing clusters around $1935 to $1940 may attract prices when they rebound.

Today's Ethereum Price Trend

Ethereum prices extended their decline on Thursday after buyers failed to maintain progress towards the psychological $2000 barrier. As of chart time, the trading price of the token was approximately US$1883, down 1.82% within the day. Ethereum hit a high of $1936 during the day and then fell to a low around $1878, indicating that selling was still active above $1900.

The 4-hour chart shows that Ethereum has fallen below the middle track of the Bollinger Band of US$1906, and the price is close to the lower track of US$1875. Buyers may try to stabilize the decline here. Short-term momentum deteriorated further, with the 4-hour RSI falling to 43.02, below its moving average of 50.13. An RSI below 50 usually indicates that the seller has control, but readings are still above the oversold threshold of 30.

Ethereum's fall stems from its repeated failure to stabilize support above $1930. Each rebound triggers a new sell-off, keeping the token volatile within a wider range rather than confirming a breakthrough.

Driving factors behind Ethereum's decline

Profit-taking near $1950 and continued defense at the $2000 mark appear to be the direct technical drivers of the decline. The $2000 price is close to the 50% Fibonacci retracement level of $1,986.33 on the daily chart. This overlapping area creates a wider resistance range where short-term traders may close their positions rather than add to them.

Derivatives positions may have exacerbated the correction. The 3rd liquidation heat chart showed that Ethereum fell sharply after trading around $1920, crossing liquidity around $1900, and then hitting above $1880. Highly leveraged traders betting on an immediate breakthrough of $2000 are under pressure as prices move in the opposite direction. Forced long liquidations will accelerate the decline because exchanges will sell underlying positions when margins are insufficient.

The macro environment remains challenging for risky assets. The Federal Reserve's decision to keep interest rates high has kept funding conditions tight for U.S. investors, while geopolitical uncertainty in the Middle East has supported a more defensive stance of the market. Ethereum also lacks the sustained spot demand needed to escape these macro pressures. Weak on-chain activity and redemption of spot Ethereum exchange-traded products have weakened two potential sources of buying support.

Ethereum's US$1873 support level faces test

Ethereum is currently testing important technology areas between US$1873 and US$1875. The daily chart sets the 0.618 Fibonacci retracement level at $1,873.50, while the four-hour Bollinger lower track is at $1,875.19. This coincidence makes this range the first line of defense that bulls need to defend.

If the daily line closes below $1873, it will weaken the rebound structure formed from the low at the end of June. The liquidation heat chart shows additional liquidity between $1850 and $1870, making the region the next potential downside target. After falling below $1850, attention will turn to $1800. Losing this psychological support could expose the 0.786 Fibonacci retracement level of $1,712.86, but Ethereum needs a deeper correction to test that level.

Some long-term indicators are still positive. The Chandler Momentum Swing Indicator (CMF) on the daily chart is 0.08, indicating that inflows are still slightly positive despite falling prices. Aron's indicator shows that Aron's upper line is 71.43 and Aron's lower line is zero, indicating that the overall rebound since July has not been completely denied. These signals contrast with the weaker 4-hour RSI, reflecting that the market's medium-term rebound pattern is still in place, but short-term momentum is biased towards sellers.

Liquidation heat chart points to US$1940 resistance

According to the 3rd heat chart, the largest concentration area of clearing leverage is located around US$1935 to US$1940. If Ethereum rebounds from current support, the cluster could serve as a price magnet. Recovering US$1906 in the middle track of the Bollinger Band will be the first signal of improvement in short-term momentum. Ethereum will then face resistance of $1938, which is on the upper rail of the Bollinger Band and overlaps with the main clearing area. Breaking through this area could open another test of $1986 and $2000.

There is additional liquidity near $1950 to $1965 and just below $2000. If buyers regain $1940, these clusters could trigger a short squeeze, but could also attract new selling orders as traders defend a wider range of resistance. If $1900 is not recovered, the downside scenario will remain active, and leveraged positions accumulated near $1875 and $1850 may become fragile.

Analyst Opinion

Cryptocurrency analyst Michaël van de Poppe described the current decline as a correction for a lower time frame while maintaining a long-term bullish view. "Ethereum remains above $1800, and as long as that is the case, there is no need to worry too much," he said, adding that he still expected Ethereum to hit $2500 in the coming months.

Analyst Ted Pillows points to a narrower support range. He said momentum was weakening after Ethereum fell below $1900, but noted that the token remained above the $1850 support area. "As long as you hold that position, I think Ethereum is more likely to rebound towards $2000."

Therefore, the chart shows that Ethereum is at a decision point. Holding the $1873 to $1850 range will preserve the possibility of another shock to $1940 and $2000. Continued breaks below this range will strengthen previous blocked signals and increase the risk of a deep correction to $1800.