Ethereum price continues to face downward pressure as it approaches the crucial $1,500 support level against the US dollar. Although a corrective move higher may be possible, there are limitations to the upside potential above $1,565.
Ethereum has been struggling to initiate a recovery above the $1,550 mark. The price remains below both the $1,565 level and the 100-hourly Simple Moving Average (SMA). Additionally, the hourly chart of ETH/USD (data feed via Kraken) depicts the formation of two bearish trend lines with resistance near $1,555 and $1,570.
The bearish momentum in Ethereum has resulted in extended losses as the digital asset failed to hold above the key $1,550 support level. Unlike Bitcoin, which has remained relatively stable, Ethereum experienced a decline and reached a new weekly low at $1,521. The price appears to be gradually moving lower after settling below the $1,600 level. The two bearish trend lines mentioned earlier continue to act as significant resistance levels for Ethereum.
Currently, Ethereum is trading below $1,565 and the 100-hourly SMA. There was a minor upside move above the 23.6% Fibonacci retracement level of the recent decline from the $1,595 swing high to the $1,521 low. However, on the upside, the price may face resistance at the $1,555 level, which aligns with the first trend line. The second trend line, the $1,565 level, and the 100-hourly SMA also serve as significant barriers.
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In the event of a breakthrough above these resistance levels, Ethereum could encounter major resistance near the $1,570 level. If successful, this could pave the way for a move towards the key resistance at $1,600. From there, further gains might open the doors for Ethereum to reach the $1,665 resistance level, potentially leading to a push towards $1,750.
However, if Ethereum fails to surpass the $1,565 resistance level, it could continue its downward trajectory. Initial support on the downside can be found near the $1,520 level, followed by the crucial support at $1,500. A breach of this support level could trigger further losses, potentially pushing the price towards the $1,440 level. If the bearish momentum persists, Ether could slide further towards the $1,420 level.
Analyzing the technical indicators, the MACD for ETH/USD is gaining momentum in the bearish zone, signaling the likelihood of further downside potential. The hourly RSI for ETH/USD is currently below the 50 level, indicating a bearish sentiment in the market.
In summary, Ethereum’s price faces strong resistance at $1,565 and the 100-hourly SMA. Upside potential remains limited, and if the resistance level holds, we could see a continuation of the downtrend. The key support level to watch is $1,500, and a break below this level could lead to further losses. Traders and investors should closely monitor these levels and the overall market sentiment to make informed trading decisions.
