Ethereum, the second-largest cryptocurrency by market capitalization, is currently facing multiple hurdles as it attempts to recover above the $1,700 resistance level against the US Dollar. The ongoing struggle could potentially lead to a further decline in the price, with key support levels at $1,580 and $1,550.
At present, Ethereum is still finding it challenging to regain traction above the $1,700 and $1,720 levels. The price is currently trading below $1,680 and the 100-hourly Simple Moving Average, indicating a bearish sentiment in the market. Additionally, there is a significant bearish trend line forming with resistance near $1,665 on the hourly chart of ETH/USD.
Similar to the trend exhibited by Bitcoin, Ethereum’s price experienced a fresh decline below the $1,650 and $1,620 levels. As a result, the price even dropped below the $1,600 support level, testing $1,580. However, a low was formed near $1,580, resulting in the price attempting to initiate a fresh recovery. Currently, Ethereum is testing the 50% Fibonacci retracement level of the downward move from the $1,693 swing high to the $1,580 low.
Despite the recovery attempt, Ethereum is still trading below the 100-hourly Simple Moving Average and continues to face resistance near the $1,650 level. This resistance level is in close proximity to the 61.8% Fibonacci retracement level of the downward move mentioned earlier. Furthermore, the next resistance lies around $1,665, which coincides with both the 100-hourly Simple Moving Average and the bearish trend line.
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To overcome the current hurdles, Ethereum needs to close above the significant barrier at the $1,700 zone. A successful breakthrough could potentially spark a decent increase in the near term, with the next major resistance level lying around $1,750. Further gains may push the price towards the $1,820 resistance level.
However, if Ethereum fails to clear the resistance at $1,665, it might indicate the start of another decline. The immediate support level on the downside is around $1,600, followed by a major support level near $1,580. A downside break beyond $1,580 could result in further losses, with the next significant support level standing at $1,550. In a more bearish scenario, the price might even reach a new low below $1,500.
Analyzing the technical indicators, the MACD for ETH/USD is currently losing momentum in the bearish zone, indicating a potential continuation of the downward trend. The hourly RSI for ETH/USD is now below the 50 level, further emphasizing the bearish sentiment in the market.
In conclusion, Ethereum is currently facing significant hurdles below the $1,700 resistance against the US Dollar. The ongoing struggle to recover above these levels could potentially lead to a decline below the $1,580 and $1,550 support levels. On the other hand, a successful breakthrough above $1,700 may usher in a new wave of price increases, with resistance levels at $1,750 and $1,820. It is important to closely monitor the price action and key support and resistance levels in the coming days to determine the future direction of Ethereum’s price.
