Ethereum Struggles to Break Resistance
Ethereum has been facing difficulty in surpassing the $1,670 resistance level. Despite trading above $1,630 and the 100-hourly Simple Moving Average, the cryptocurrency has been unable to make significant progress.
Bullish Breakout and Subsequent Correction
Initially, Ethereum experienced a decent increase above the $1,620 resistance. It even managed to climb past the $1,650 resistance level. However, the bears emerged as the price approached the $1,670 resistance. The bears were able to defend this level, resulting in a downside correction.
Support Levels and Fibonacci Retracement
Ethereum is currently trading above $1,630 and the 100-hourly Simple Moving Average. It is also close to the 61.8% Fib retracement level of the upward move from the $1,613 swing low to the $1,669 high. On the upside, the $1,650 level may pose as a resistance.
Potential Upside and Downside
If Ethereum manages to surpass the $1,670 resistance, it could move towards the $1,720 resistance and potentially reach a major hurdle near $1,750. A break above this level might push Ethereum further upwards to around $1,880 in the near future.
However, if Ethereum fails to clear the $1,650 resistance, it may experience another decline. The initial support lies at around $1,630 and the 100-hourly Simple Moving Average. If it breaks below $1,600, a bearish wave could be initiated with a potential decline towards $1,540.
Technical Indicators
The MACD for ETH/USD is losing momentum in the bullish zone, while the RSI for ETH/USD is now below the 50 level.
Hot Take: Ethereum Faces Resistance and Potential Correction
Ethereum has been facing resistance at the $1,670 level, preventing it from making significant progress. While it is currently trading above key support levels and the 100-hourly Simple Moving Average, a failure to break the $1,650 resistance may result in another downward correction. Traders should closely monitor these levels to gauge Ethereum’s next move in the short term.
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