Ethereum Attempts Recovery Above $1,600 Level
Ethereum’s price is currently making an effort to recover and move above the $1,600 level. It is trading above this level as well as the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a key bullish trend line is forming with support near $1,600 (data feed via Kraken). If the price manages to close above $1,620 and $1,650, it could potentially start a decent increase.
Ethereum Price Holds Ground
Ethereum has maintained strong support above the $1,580 level. The price formed a base above $1,600 and even experienced a slight increase recently, similar to Bitcoin. Although there was a move above $1,620, the upside was limited. The price reached a high around $1,633 but faced a strong bearish reaction. As a result, most gains were trimmed and the price revisited the $1,580 zone. However, it is now rising again.
Ethereum is currently trading above $1,600 and the 100-hourly Simple Moving Average. Additionally, there is a key bullish trend line forming with support near $1,600 on the hourly chart of ETH/USD.
On the upside, the price may encounter resistance around the $1,608 level or the 50% Fib retracement level of the recent decline from the $1,633 swing high to the $1,583 low. The next major resistance is at $1,620, which is close to the 76.4% Fib retracement level of the aforementioned decline.
Source: ETHUSD on TradingView.com
A Potential Rise in Ether Price
If Ethereum manages to break above the $1,620 resistance level, it could lead to further upward movement in the upcoming sessions. However, the main hurdle remains near the $1,650 and $1,660 levels. Clearing the $1,660 hurdle could initiate a decent increase towards the $1,720 resistance level. Further gains may even open doors for a move towards $1,800.
Another Drop in ETH?
In the event that Ethereum fails to surpass the $1,620 resistance level, it may experience another decline. The initial support on the downside is near the $1,600 level and the trend line. If this support is broken, the price could test the $1,540 support level. A break below this support might trigger strong bearish moves and potentially lead to a drop towards the $1,450 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD has now moved above the 50 level.
Major Support Level – $1,580
Major Resistance Level – $1,620
Hot Take: Ethereum Faces Resistance But Recovery Is Possible
Ethereum is currently facing resistance around the $1,620 level but there is still potential for recovery. If the price manages to break above this resistance and surpass key levels such as $1,650 and $1,660, it could experience a significant increase. On the other hand, if Ethereum fails to clear the resistance, it might face another drop. The immediate support levels to watch are $1,600 and $1,540. Technical indicators suggest a bearish momentum but also indicate a potential for recovery. Overall, the next few sessions will be crucial in determining Ethereum’s price movement.
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