Ethereum continued its slide on July 31, dropping nearly 2% to trade around $1,883. The token’s failure to break and hold above the $2,000 mark pushed it closer to key support levels just under $1,875. Sellers have remained persistent, keeping ETH from regaining momentum after several attempts.
Technical charts reveal Ethereum slipping below the middle Bollinger Band near $1,906, edging toward the lower band at $1,875 where buyers might try to halt the decline. Meanwhile, short-term momentum weakened as the 4-hour Relative Strength Index sank to 43.02, signaling that sellers have taken control but the token is not yet oversold. This pullback follows repeated rejections near $1,930, preventing a breakout and trapping ETH in a broader consolidation.
What’s behind the drop?
Profit-taking around $1,950 and the psychological barrier at $2,000 weighed heavily on the price. The $2,000 level also coincides with the 50% Fibonacci retracement near $1,986, forming a tough resistance zone where traders are likely closing positions instead of buying more. Derivatives activity probably intensified the downturn as well. Data from CoinGlass shows sharp ETH liquidations after it hovered near $1,920, pushing the price through liquidity points around $1,900 before settling in the upper $1,880 range.
Despite the recent dip, deeper liquidity clusters sit near $1,850, suggesting buyers could regroup there. For now, Ethereum’s price remains under pressure as traders weigh the next move.
This material is for informational purposes only and does not constitute financial advice.
