Ethereum’s price has erased previous gains and revisited the $1,580 mark against the US dollar. If it remains below the $1,600 support level, there is potential for further downward movement.
A fresh decline for Ethereum commenced below the $1,650 support level, with the price currently trading under $1,665 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD (data feed via Kraken), a significant bearish trend line is taking shape, presenting resistance around $1,645.
However, there’s a chance of a new uptrend if Ethereum manages to surpass the resistance levels at $1,650 and $1,665.
Revisiting Support
Ethereum encountered difficulty staying above the $1,665 level, slipping into a bearish zone, much like Bitcoin. The decline was steep enough to push the price below $1,600 on the Kraken exchange. Ultimately, the price retested the crucial support level at $1,585, forming a low near $1,585 before initiating a potential rebound. Ethereum briefly ascended above $1,620.
Ether managed to rise above the 23.6% Fibonacci retracement level of the downward movement from the $1,743 swing high to the $1,585 low. Nevertheless, it’s worth noting that Ethereum is currently trading below both $1,665 and the 100-hourly Simple Moving Average.
Potential Hurdles Ahead
On the upside, the $1,650 level is expected to pose resistance, alongside a notable bearish trend line near $1,645, as indicated on the hourly ETH/USD chart. The next significant resistance zone is at $1,665, which coincides with the 50% Fibonacci retracement level of the decline from the $1,743 high to the $1,585 low.
If Ethereum convincingly clears this resistance zone, it may pave the way for a fresh uptrend, possibly targeting the $1,700 resistance level. Beyond that, the next critical resistance zone might be at $1,750, with further gains potentially opening the door for a move toward $1,820.
Downside Risks
Should Ethereum fail to overcome the $1,665 resistance, there’s a risk of further downward movement. Initial support can be found near the $1,620 level, with the $1,600 mark serving as the next crucial support.
A breach below the $1,600 support could trigger a more pronounced bearish trend, potentially leading to a drop below $1,585. In such a scenario, Ethereum might test the $1,540 support level.
Technical Indicators
The hourly MACD for ETH/USD indicates a loss of bearish momentum, though it remains in the bearish territory. The hourly RSI has dipped below the 50 level, further underscoring the current bearish sentiment.
Key Levels
- Major Support Level: $1,600
- Major Resistance Level: $1,665