Ethereum Continues to Decline, Testing Key Support Levels
The price of Ethereum has been struggling and is currently trading below the $1,600 support zone and the 100-hourly Simple Moving Average. There is a bearish trend line forming with resistance near $1,600 on the hourly chart.
Ethereum’s price declined below the $1,600 support level and settled below the 100-hourly Simple Moving Average. It reached a low of around $1,571 and is now consolidating its losses. The price is currently testing the 23.6% Fib retracement level of the recent decline.
There is also a key bearish trend line forming with resistance near $1,600 on the hourly chart. On the upside, the price might face resistance near the $1,590 level and the 61.8% Fib retracement level.
If Ethereum fails to clear the $1,600 resistance, it could start another decline. The initial support on the downside is near the $1,570 level, followed by a key support at $1,540. A break below $1,540 could push the price further into a bearish zone towards $1,500.
Technical Indicators and Potential Scenarios
The MACD for ETH/USD is gaining momentum in the bearish zone, indicating a downward trend. The RSI for ETH/USD is now below the 50 level.
The main hurdle for Ethereum’s price is forming near $1,620. A close above this resistance could send the price towards $1,650 and potentially even higher levels such as $1,720 or $1,820.
Overall, Ethereum’s price is facing significant resistance and may continue to decline in the short term. However, a breakthrough above the $1,620 resistance level could signal a bullish trend reversal.
Source: ETHUSD on TradingView.com
Hot Take: Ethereum Struggles to Find Support Below $1,600
Ethereum’s price is currently in a bearish zone, trading below the $1,600 support level and facing resistance near $1,600. The price has declined below key support levels and is consolidating its losses.
If the price fails to clear the $1,600 resistance, it could lead to further declines towards the $1,500 level. However, if there is a breakthrough above the resistance, Ethereum could experience a bullish rally towards higher levels.
Traders should closely monitor the technical indicators such as the MACD and RSI for signs of trend reversals. Overall, Ethereum’s price outlook remains uncertain as it continues to struggle in finding strong support.
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