Ethereum drops 2.6% to $1,870 as $1,850 support faces test

Ethereum fell 2.6% to about $1,870 on Aug. 11 after another rejection below $1,950 triggered long liquidations ahead of the U.S. inflation report.

CoinGlass data shows leveraged positions clustered near $1,895 and $1,940, while downside liquidity sits around $1,857. The 4-hour Bull Bear Power indicator fell to -25.44, and the Supertrend flipped bearish with dynamic resistance near $1,925.

The July U.S. Consumer Price Index, due Aug. 12 at 8:30 a.m. Eastern, is the next macro event. A hot reading could pressure ETH toward $1,850, while softer inflation may help reclaim $1,900.

Ethereum traded near $1,870 during the latest session after sellers rejected another attempt to hold above the $1,900 psychological level. The decline extended from the Aug. 10 high near $1,935 and briefly pushed the token toward an intraday low of approximately $1,867. ETH had recovered to around $1,886 by the time charts were captured, reducing part of the daily loss.

The move follows several days of compression between roughly $1,850 and $1,950. Ethereum briefly approached the upper end of that range during the previous session, but buyers could not generate enough momentum to secure a daily close above $1,900. The loss of $1,900 has returned attention to the lower boundary of the range.

The immediate pressure came from Ethereum's failure to clear the $1,900-$1,950 resistance zone. Repeated rejections in the same area encouraged short-term traders to take profits, while the move below $1,900 exposed leveraged long positions opened in anticipation of a breakout. Bitcoin slipped 0.9% to $64,317 over the same stretch, keeping the broader crypto market under pressure.

The 3-day CoinGlass liquidation heatmap shows a dense concentration of leveraged positions near $1,895, just above Ethereum's current price. A move through $1,895 could liquidate nearby short positions and accelerate a return above $1,900. The strongest overhead concentration appears near $1,940, inside the same resistance zone that stopped recent advances. Downside liquidity is concentrated around $1,857, where a decline could trigger another wave of long liquidations before buyers attempt to defend the $1,840-$1,850 support zone.

Ethereum's daily chart presents a mixed setup. ETH is trading below its 20-day simple moving average at $1,892.52 and its 100-day average at $1,895.32, creating immediate resistance around $1,890-$1,900. The token also remains well below the 200-day SMA at $2,040.56. The 50-day SMA at $1,810 provides the closest major dynamic support below the current range.

Daily momentum remains neutral rather than deeply bearish. The Relative Strength Index stands at 51.63, slightly below its signal average of 53.51, giving sellers some short-term control without placing Ethereum near oversold conditions.

Analyst Ted Pillows identified $1,850 as a must-hold area if Ethereum is to produce another push above $1,900, with subsequent upside levels near $2,000 and $2,190. A confirmed loss of current support could open a decline toward $1,700 and eventually the $1,550 region. Daan Crypto Trades offered a similar range assessment, arguing ETH must break and hold $1,950 to open a move above $2,100, while marking $1,850 as the bullish invalidation level.

Institutional demand provides some support despite the short-term price weakness. U.S. spot Ethereum ETFs attracted approximately $244.9 million during the week ended Aug. 7, according to flow data. Those inflows challenge the idea that institutional investors have completely withdrawn from ETH, though ETF demand has not yet been strong enough to force a breakout through the $1,950 resistance area.

The next directional move may depend on whether U.S. inflation data strengthens or weakens the dollar and Treasury yields. A favorable response could help Ethereum reclaim $1,900 and target the $1,925 Supertrend level, followed by the $1,940-$1,950 liquidity zone. Failure to recover $1,900 would keep ETH vulnerable to another test of $1,857 and $1,850. A daily close below that support would expose the 50-day SMA near $1,810, while sustained selling could place the July consolidation area around $1,700 back in focus.

For now, Ethereum remains compressed between a well-defended floor and heavy overhead supply. The reaction at $1,850 or a confirmed break above $1,950 will provide stronger evidence of the market's next trend.

This article is for informational purposes only and does not constitute investment advice.