Ethereum Facing Downward Pressure Below $1,550 Support Zone
Ethereum has seen a decline in its price and has dropped below the crucial $1,600 pivot level. It is currently trading just below $1,565 and the 100-hourly Simple Moving Average. A bearish trend line is forming with resistance near $1,565 on the hourly chart of ETH/USD. The pair remains at risk of further downsides towards the $1,440 support.
Ethereum Price at Risk of More Losses
Ethereum’s price has started a fresh decline and has settled below the $1,600 pivot level. It has also fallen below the $1,565 and $1,550 support levels. A low has been formed near $1,542 and the price is currently consolidating losses. There is a bearish trend line forming with resistance near $1,565 on the hourly chart of ETH/USD. Ethereum is now trading just below $1,565 and the 100-hourly Simple Moving Average.
Resistance Levels and Potential Recovery
Ethereum is facing resistance near the $1,565 level and the bearish trend line. The 50% Fib retracement level of the downward move from the $1,585 swing high to the $1,542 low is also near the trend line. The first major resistance is around the $1,575 zone or the 76.4% Fib retracement level. If Ethereum manages to close above this resistance level, it could start a steady increase and potentially recover towards the $1,600 resistance.
Possible Further Decline
If Ethereum fails to clear the $1,565 resistance level, it may experience another decline. The initial support on the downside is near the $1,540 level, followed by a key support at $1,520. A break below $1,520 could trigger significant bearish moves, potentially leading the price towards the $1,440 level. Further losses may even push Ether towards the $1,350 level.
Technical Indicators
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, suggesting a bearish sentiment.
Hot Take: Ethereum Faces Downside Pressure as Support Levels Break
Ethereum’s price has faced downward pressure as it falls below key support levels. The bearish trend line and resistance near $1,565 pose challenges for a potential recovery. If the resistance is not cleared, Ethereum could experience further declines towards the $1,440 support. Technical indicators also indicate a bearish trend. However, if Ethereum manages to break above the resistance and sustain gains, it may initiate a steady increase towards the $1,600 level. The next few days will be critical in determining whether Ethereum can overcome this downward pressure.
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