The Ethereum price is facing challenges in its attempt to reclaim levels above $1,650 against the US Dollar. ETH is currently displaying bearish signals and may potentially breach the $1,600 support level.
Efforts to establish momentum above the $1,650 range have proven unsuccessful for Ethereum.
At present, the price is trading beneath both $1,640 and the 100-hourly Simple Moving Average.
On the hourly chart of ETH/USD, two bearish trend lines are forming, featuring resistance around $1,630 and $1,640 (data sourced from Kraken).
In the event that the bears manage to drive the pair below the $1,600 support, there could be an accelerated decline.
The Ethereum price continues to carry a potential risk.
Ethereum’s price recently made an effort to rebound from the $1,600 support region. It managed to surpass the $1,630 mark, but encountered resistance around $1,650, mirroring Bitcoin’s situation.
Presently, the price is once more on a downward trajectory, displaying bearish indications. Additionally, on the hourly chart of ETH/USD, two bearish trend lines are emerging, with resistance situated around $1,630 and $1,640. Furthermore, Ether is currently trading below both $1,640 and the 100-hourly Simple Moving Average.
On the positive side, potential resistance awaits the price around the $1,630 level, coinciding with the initial trend line. Subsequently, the next hurdles lie in the vicinity of the $1,640 level, the second trend line, and the 100-hourly Simple Moving Average. Additionally, these levels are closely aligned with the 23.6% Fibonacci retracement level of the downward movement from the $1,750 peak to the $1,600 low.
Should the price successfully breach the $1,640 barrier, it could pave the way for a move towards the $1,670 zone. However, the primary resistance zone is currently forming around $1,700 or the 61.8% Fibonacci retracement level of the decline from the $1,750 high to the $1,600 low.
For Ethereum to embark on a new upward trajectory, it is imperative that it establishes stability above the $1,700 resistance area. Beyond this point, the subsequent hurdle could potentially manifest around the $1,750 mark. Further gains could potentially propel the price towards the $1,800 resistance level.
Could Ethereum Experience Further Declines?
If Ethereum is unable to breach the $1,640 resistance, there is a possibility of further downward movement. The initial support on the downside is situated around the $1,610 level.
Technical Indicators:
- Hourly MACD: The MACD for ETH/USD is showing increased bearish momentum.
- Hourly RSI: The RSI for ETH/USD has now dipped below the 50 level.
Key Support Level: $1,600
Key Resistance Level: $1,640