Ethereum Struggles to Maintain Support Above $1,600
The price of Ethereum is currently struggling to stay above the $1,600 support zone. It is trading below $1,650 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, there is a major bearish trend line forming with resistance near $1,645.
Ethereum Price Attempts Recovery
Ethereum made an attempt to recover from the $1,630 zone and managed to climb above the $1,650 resistance level. However, it faced limitations similar to Bitcoin and couldn’t gain enough momentum to move above the $1,665 resistance level. The price reached a high near $1,654 but reacted downwards.
Currently, Ethereum is consolidating its losses after declining below the $1,620 support level and trading close to $1,600. It is now trading below $1,650 and the 100-hourly Simple Moving Average.
Possible Upside for Ethereum
On the upside, Ethereum might encounter resistance near the $1,630 level. This level is close to the 50% Fib retracement level of the recent decline from the $1,654 swing high to the $1,607 low. The next major resistance levels are at $1,650 (including the trend line and 100-hourly SMA) and $1,665.
To start a steady increase in price, Ethereum needs to settle above the $1,650 and $1,665 levels. If this happens, the next key resistance could be at $1,720 which might open doors for further gains towards $1,750.
Potential Losses in ETH
If Ethereum fails to clear the $1,650 resistance, it could continue moving downwards. The initial support on the downside is near the $1,610 level, followed by the key support at $1,600. In case of a downside break below $1,585, Ethereum might experience another strong decline towards the $1,540 level. Further losses may even push the price down to $1,500.
Technical Indicators
The MACD for ETH/USD is gaining momentum in the bearish zone according to the hourly MACD indicator. The RSI for ETH/USD is now below the 50 level.
Hot Take: Ethereum Struggles to Maintain Support Amidst Market Volatility
Ethereum continues to face challenges in maintaining support above the $1,600 level as it trades below key resistance levels. The market volatility and limitations in upside momentum have resulted in a consolidation of losses for Ethereum. To see a significant increase in price, Ethereum needs to break through resistance levels at $1,650 and $1,665. On the other hand, failure to do so might lead to further losses and a potential decline towards $1,500. Traders and investors should closely monitor these levels and technical indicators to make informed decisions about their Ethereum holdings.