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ETH is now entering a critical area of support that will likely determine what will happen in the next few weeks. At this point, ETH needs to stay above the $1,900 level and bounce sharply off those levels to reverse its downtrend.
Otherwise, if the price breaks below that threshold, losses will likely accelerate and downside risks will increase significantly. Right now, a drop to the $1,915 support would result in near-term losses of 9.7%.
However, a break below that mark could push ETH to $1,750 and, ultimately, to $1,500 if the downturn accelerates. This means a downside risk of 29.4% in the near term if the token moves below $1,900.
Momentum indicators favor a bearish outlook as the Relative Strength Index (RSI) shows no signs of a bullish divergence while the MACD is still in negative territory. For ETH to reverse its downtrend, it would have to climb above $2,500 at least in the next few days.
ETH Has Made Four Consecutive Lower Highs Since Sunday
Heading to the hourly chart, we can see that ETH has made three consecutive lower highs since its Sunday peak. This means that the token is on a downtrend. However, momentum indicators are favoring a bullish outlook at the moment in the hourly chart.
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