Ethereum Price Faces Resistance and Dives Below $1,600
Ethereum’s price failed to surpass the $1,665 resistance level and started a downward trend. The bears pushed the price below $1,600 and the 100-hourly Simple Moving Average. As a result, Ethereum retested the $1,550 support level.
Currently, Ethereum is trading below $1,600 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, there is a bearish trend line forming with resistance near $1,610.
Recovery Attempts and Potential Resistances
After testing the $1,550 support level, Ethereum is attempting a recovery wave. It has moved above the 23.6% Fib retracement level of the recent decline from the $1,664 swing high to the $1,549 low.
The $1,600 level might act as a resistance for Ethereum’s price. The first major resistance is near the trend line at $1,610. Additionally, it aligns with the 50% Fib retracement level of the recent decline.
The next significant resistance levels are at $1,620 (the 100-hourly Simple Moving Average) and $1,665. A close above $1,665 could potentially lead to a rise towards the key resistance at $1,750.
Possible Downside Break
If Ethereum fails to clear the $1,600 resistance level, it may continue its downward movement. Initial support lies near $1,565 and the next key support is at $1,550.
A downside break below the $1,550 support could trigger another strong decline. In such a case, Ethereum’s price might revisit the $1,465 level, and further losses could push it towards $1,420.
Technical Indicators
The hourly MACD for ETH/USD is showing a loss of momentum in the bearish zone. The hourly RSI is now below the 50 level.
Hot Take: Ethereum Faces Resistance and Potential Downside Break
Ethereum’s price has faced resistance near $1,600 and is trading below the 100-hourly Simple Moving Average. It is currently attempting a recovery, but if it fails to clear the resistance level, a downside break below $1,550 could lead to further declines. On the other hand, a close above $1,665 might pave the way for more gains towards key resistance levels at $1,750 and $1,820. Traders should closely monitor these levels to determine the next direction for Ethereum’s price movement.
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