The price of Ethereum is currently on a downward trajectory, edging closer to the critical support level at $1,500 against the US dollar. While there’s a possibility of a corrective move to the upside, any potential gains may be capped around the $1,565 mark.
Ethereum is encountering difficulties in initiating a recovery above the $1,550 threshold. As it stands, the price is trading beneath both $1,565 and the 100-hourly Simple Moving Average. Additionally, there are two bearish trend lines emerging on the hourly chart of ETH/USD, with resistance zones situated at approximately $1,555 and $1,570, based on data sourced from Kraken.
Although there is a potential for a correction to the upside, bearish sentiment may persist, particularly around the $1,565 level.
Ethereum’s Price Decline Continues
Ethereum has remained in a bearish trend, unable to breach the resistance zone at $1,580. Unlike Bitcoin, ETH has failed to maintain its position above the crucial $1,550 support level and has extended its descent.
The price reached a new weekly low at $1,521, signaling a gradual descent following its drop below $1,600. Furthermore, two bearish trend lines are becoming more prominent, with resistance thresholds near $1,555 and $1,570 on the hourly ETH/USD chart.
At present, Ethereum is trading below the $1,565 level and the 100-hourly Simple Moving Average. A minor upward move transpired, surpassing the 23.6% Fibonacci retracement level of the recent decline from the $1,595 high to the $1,521 low.
On the upside, resistance levels are expected around $1,555 and the initial trend line. The primary obstacle lies at the second trend line, roughly at $1,565, followed by the 100-hourly Simple Moving Average. This level aligns closely with the 61.8% Fibonacci retracement level of the recent decline from the $1,595 high to the $1,521 low.
A decisive break above the $1,570 resistance might propel the price towards the critical $1,600 resistance level. In this scenario, Ethereum could experience an uptick, potentially heading towards the $1,665 resistance, with further gains possibly paving the way for a move to $1,750.
Additional Losses for ETH?
Should Ethereum falter in clearing the $1,565 resistance, a continuation of the downward movement becomes a distinct possibility. The initial support on the downside rests around the $1,520 level, with the next crucial support at $1,500.
If the price breaks below the pivotal $1,500 support, it could trigger further downward movement. In such a case, the price might decline towards the $1,440 level, with any additional losses potentially pushing Ethereum towards the $1,420 mark.