Ethereum fell to about $1,883 on July 31, sliding 1.82% as buyers again failed to reclaim $2,000. The token is now testing support between $1,873 and $1,850, a level analysts say needs to hold to keep hopes of a rally toward $2,000 intact.
Ethereum dropped to about $1,883 on July 31, down 1.82% on the day after buyers again failed to push the token back above $2,000. The token reached an intraday high of $1,936 before slipping to a low near $1,878, showing sellers stayed in control above $1,900.
RSI weakens as Ethereum tests support
Price action on the four-hour chart shows Ethereum breaking below the middle Bollinger Band at $1,906, moving the token toward the lower band near $1,875, where buyers may try to stabilize the decline. Momentum has also weakened: the four-hour RSI fell to 43.02, below its moving average of 50.13, though the reading remains above the oversold threshold of 30. The retreat follows several failed attempts to hold support above $1,930, leaving Ethereum inside a broader consolidation range rather than confirming a breakout.
Profit-taking and macro pressure drive the slide
Profit-taking near $1,950 and the defense of $2,000 appear to be the immediate drivers behind the pullback. That level sits close to the 50% Fibonacci retracement at $1,986.33 on the daily chart, creating a resistance zone where short-term traders may be closing positions. Derivatives positioning likely amplified the move: the three-day CoinGlass heatmap shows ETH dropping through liquidity near $1,900 after trading around $1,920, before reaching the upper $1,880s.
Broader conditions remain challenging, too. The Federal Reserve's decision to maintain elevated interest rates has kept financing conditions restrictive for US investors, while geopolitical uncertainty in the Middle East has supported a more defensive market posture. Weak on-chain activity and redemptions from spot Ethereum exchange-traded products have also reduced two potential sources of buying support.
$1,873 support faces the next test
Ethereum is now testing the area between $1,873 and $1,875, where the daily 0.618 Fibonacci retracement and the four-hour lower Bollinger Band converge. A daily close below that zone would weaken the recovery structure built since late June, with the liquidation heatmap pointing to additional liquidity between approximately $1,850 and $1,870 as the next potential downside target. Below $1,850, attention would shift to $1,800; losing that level could expose the 0.786 Fibonacci retracement at $1,712.86, though ETH would need a much deeper correction to reach it.
Some longer-term signals remain constructive, however: Chaikin Money Flow stood at 0.08, and Aroon Up read 71.43 against an Aroon Down of zero, suggesting the broader July recovery has not been fully invalidated even as near-term momentum favors sellers.
Analysts split between caution and recovery hopes
Analyst Michaël van de Poppe called the decline a lower-timeframe correction and said he still expects ETH to reach $2,500 in the coming months as long as the token holds above $1,800. Ted Pillows pointed to a narrower range, noting momentum weakened after ETH fell below $1,900, though the token remained above its $1,850 support zone. Pillows added: "As long as it holds, I think ETH is more likely to rally towards $2,000."
Source: crypto.news
Trading involves risk.
Risk Disclaimer
