Ethereum Attempts Recovery Above $1,580 Level
Ethereum is making an effort to recover and move higher above the $1,580 level. Currently, the price is trading above $1,590 and the 100-hourly Simple Moving Average. There was a significant breakthrough as a major bearish trend line with resistance near $1,590 was broken on the hourly chart of ETH/USD.
Ethereum Price Signals Recovery
Similar to Bitcoin, Ethereum’s price has remained strong above the $1,565 level. It appears to be forming a base above this level and is gradually moving higher. The price successfully recovered above both the $1,580 and $1,590 levels.
In addition, there was a break above the 23.6% Fibonacci retracement level of the downward move from the $1,669 swing high to the $1,565 low. This positive momentum was further supported by breaking a major bearish trend line with resistance near $1,590 on the hourly chart of ETH/USD.
Ethereum is now trading above $1,590 and the 100-hourly Simple Moving Average. However, it may face resistance around the $1,600 level.
The next significant resistance level is at $1,620, close to the 50% Fibonacci retracement level of the downward move from the $1,669 swing high to the $1,565 low. If Ether manages to push through this resistance, it could lead to further gains and a steady increase in price.
Another Drop in ETH?
If Ethereum fails to surpass the $1,620 resistance level, it could potentially experience another decline. The initial support on the downside is expected around $1,580.
Should the price continue to drop, the next key support level is at $1,565. If this support is breached, there is a possibility of testing the $1,540 support level. A failure to protect the $1,540 support could result in a sharp decline towards the $1,440 level.
Technical Indicators
The hourly MACD for ETH/USD is currently losing momentum in the bearish zone. On the other hand, the hourly RSI for ETH/USD is now above the 50 level.
Source: ETHUSD on TradingView.com
Hot Take: Ethereum’s Recovery Depends on Resistance Breakthrough
Ethereum’s price is attempting a recovery above key resistance levels. The successful breakthrough of these resistances would signal a potential increase in price towards $1,720 and even $1,800. However, if Ethereum fails to clear the resistance at $1,620, it could experience another drop and potentially test support levels at $1,580 and $1,565. Technical indicators suggest that the momentum is currently in favor of bears. Keep a close eye on how Ethereum performs against these resistance levels as it will determine its short-term direction.
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