ETHUSD has been trending downwards since mid-August when the price failed to surpass the 2,030 mark. Even though Ethereum experienced an acceleration of its decline following the successful completion of the Merge in mid-September, it has been trading within a tight range during the past month.
The momentum indicators currently suggest that near-term risks remain tilted to the downside. Specifically, the RSI is declining beneath its 50-neutral mark, while the stochastic oscillator is descending after posting a bearish cross.
Should selling pressures intensify, the price could initially test the recent support of 1,200. Sliding beneath that floor, the spotlight may turn to the crucial 1,000 psychological mark. A decline below the latter might trigger a retreat towards the 2022 low of 880.
On the flipside, bullish actions could meet immediate resistance at 1,410, which is the upper boundary of the recent sideways pattern and overlaps with the 50-day simple moving average (SMA). Piercing this threshold, the price could ascend towards the recent peak of 1,800 before the spotlight turns to the trend reversal point of 2,030.
In brief, ETHUSD appears to be in a consolidation mode, waiting for developments that could provide fresh directional impetus. A break above or below its tight range is likely to be followed by a significant move in the same direction.
