Ethereum Struggles to Break Resistance
Ethereum has been facing difficulty in surpassing the $1,660 resistance level. Despite trading above $1,635 and the 100-hourly Simple Moving Average, it has failed to clear the hurdle.
Formation of Contracting Triangle
A significant development is the formation of a key contracting triangle with resistance around $1,650 on the hourly chart of ETH/USD. This indicates a potential breakout in either direction.
To initiate another increase in the short term, it is crucial for the pair to maintain support above the $1,620 zone.
Price Correction and Immediate Support
Although Ethereum made two attempts to gain strength above $1,660, it faced a downside correction after reaching a high near that level. The price dropped below $1,650 and the 50% Fib retracement level.
Currently, Ethereum is trading above $1,635 and the 100-hourly Simple Moving Average. It is also holding the 76.4% Fib retracement level.
Resistance Levels and Potential Upside
The key resistance levels for Ethereum are at $1,650, $1,660, and $1,670. A close above the $1,670 resistance could propel the price towards $1,750 and eventually to the major hurdle at around $1,820.
If Ethereum fails to break the $1,660 resistance, it might experience another decline. The initial support lies at around $1,635 and the 100-hourly Simple Moving Average. Further support levels are at $1,620 and $1,600.
Technical Indicators
The MACD for ETH/USD is showing a loss of momentum in the bullish zone, while the RSI has fallen below the 50 level.
Major support level: $1,620
Major resistance level: $1,660
Hot Take: Ethereum’s Struggle to Surpass Resistance Continues
Ethereum has been facing challenges in breaking through the $1,660 resistance level. Despite trading above key support levels and forming a contracting triangle pattern, it has been unable to gain momentum.
While there is potential for an upside breakout if Ethereum manages to surpass the resistance levels, a failure to do so could result in a downside correction. Traders should closely monitor the support levels and technical indicators for further insights into Ethereum’s price movement.
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