After the Bitcoin price dropped below $30000, the Ethereum price dropped below $1800. So the price dropped below the key support level. However, the ETH/USD pair continues to trade within the descending price channel, which began forming two weeks ago.
At the same time, the decline in the price of Ethereum below $1800 made the short-term forecast for Ethereum bearish. And if today's daily candle closes below $1800, then the short-term bearish outlook will be confirmed. If the bulls manage to lift the price above $1800 by the end of the day, the short-term outlook will remain neutral again, but this is unlikely.
In the current situation, the level of 1715 is the closest support level for the ETH/USD pair. The next support level is around $1700. A decline below $1670 will lead to the exit of the ETH/USD pair from the descending channel and strengthen sales.
On the other hand, the level of 1800 has become a new resistance for the ETH/USD pair. The level of 1930, which is also the upper border of the descending channel, will become the next resistance level for the ETH/USD pair.
The RSI technical indicator is trading below the 40 level, showing a downtrend. Thus, we should expect a decline in the price to the oversold zone.
It is worth noting that, despite the decline in the price of Ethereum, whales continue to accumulate this altcoin. They buy Ethereum and withdraw it from the exchange to cold wallets. According to Santiment, the top 10 holders continue to increase their reserves. They already control 20,58% of the total supply.
The situation is developing unexpectedly, as investors were waiting for the Ethereum price to rise ahead of the EIP-1559 update, which is scheduled for August 4th.