Ethereum’s price saw a correction downward after facing resistance at the $1,670 level against the US Dollar. The situation could worsen significantly if the crucial support at $1,600 is breached.
The descent in Ethereum’s value commenced after encountering resistance at $1,660.
Currently, the price is trading beneath $1,640 and is below the 100-hourly Simple Moving Average.
On the hourly chart of ETH/USD (data sourced from Kraken), a significant bearish trend line is taking shape, indicating resistance around $1,640.
For a potential short-term uptrend, it is imperative that the pair maintains its position above the support zone at $1,600.
Ethereum’s Value Continues to Decline.
Ethereum’s price encountered obstacles in surpassing the $1,660 and $1,670 resistance thresholds, leading to a subsequent downturn that brought it below the $1,630 support, mirroring Bitcoin’s behavior.
Furthermore, it slipped beneath the $1,620 support, but there is notable bullish activity around the $1,600 mark. A bottom was established around $1,606, and presently, the price is consolidating its losses. It is hovering near the 23.6% Fibonacci retracement level, calculated from the decline between the $1,659 high and the $1,606 low.
Currently, Ether is trading beneath both the $1,640 mark and the 100-hourly Simple Moving Average. Additionally, an essential bearish trend line is taking shape, presenting resistance in the vicinity of $1,640 on the hourly ETH/USD chart.
Looking towards the upside, potential resistance lies around the $1,630 level and the 100-hourly Simple Moving Average. Beyond that, the next obstacle can be found near the $1,640 level along with the aforementioned trend line. This trend line also converges with the 61.8% Fibonacci retracement level, calculated from the downward movement between the $1,659 high and the $1,606 low.
The primary resistance level currently materializes around $1,660. An effective breach of this $1,660 resistance could propel the price in the direction of the $1,720 resistance. Beyond that, a significant hurdle looms at the $1,750 threshold. Should Ethereum manage to close above this $1,750 level, it could potentially ascend even higher, targeting the $1,820 mark.
Is Ethereum Set for Further Declines?
Should Ethereum breach below the $1,600 threshold in a downward movement, it could potentially intensify the losses. The subsequent crucial support level hovers near $1,540, and a breach beneath it might lead to a test of the $1,500 mark. Beyond that, the next significant support lies at $1,440.