Ethereum’s price is poised for a potential rebound from the $1,565 support against the US Dollar. The path to upward momentum appears feasible if Ethereum manages to establish stability above the $1,600 and $1,620 levels.
Currently, Ethereum is making an effort to initiate a recovery phase beyond the $1,580 mark.
The price is presently trading above $1,590, maintaining a position above the 100-hourly Simple Moving Average.
Notably, there has been a breakthrough beyond a significant bearish trend line, which had resistance around $1,590, as seen on the hourly chart of ETH/USD (data source: Kraken).
For Ethereum to initiate a recovery trend, it will be crucial to achieve a close above the $1,600 and $1,620 thresholds.
Ethereum’s price is showing signs of recovery.
Ethereum’s price has maintained strong support above the $1,565 level, indicating a potential base formation similar to Bitcoin’s recent trend.
The price has successfully regained ground above key levels, including $1,580 and $1,590. Furthermore, there was a notable breakthrough above the 23.6% Fibonacci retracement level of the downward movement from the $1,669 peak to the $1,565 low. Additionally, a significant bearish trend line was breached, with resistance previously located around $1,590, as observed on the ETH/USD hourly chart.
Currently, Ethereum is trading above both $1,590 and the 100-hourly Simple Moving Average. However, the $1,600 level may pose as a resistance point on the upside.
The next notable resistance is situated at $1,620, which closely aligns with the 50% Fibonacci retracement level of the recent downward movement from the $1,669 high to the $1,565 low. If Ethereum manages to surpass this level, it could potentially experience further upward momentum, leading to the possibility of a sustained upward trend.
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The subsequent significant resistance levels to watch for are in the vicinity of $1,650 and $1,660. Should the bullish momentum prove effective in surpassing the $1,660 obstacle, it may initiate a substantial upward trajectory toward the $1,720 resistance level. Further advancements could potentially unlock opportunities for a move toward the $1,800 mark.
Another Drop in ETH?
In the event that Ethereum encounters difficulty surpassing the $1,620 resistance, a potential downtrend could ensue. The initial support to watch for on the downside is approximately at the $1,580 level.
Subsequently, the next critical support level lies at $1,565, and if breached, it could lead to a test of the $1,540 support. Failing to maintain this $1,540 support level might result in a significant downward move. In such a scenario, the price could potentially plummet towards the $1,440 level.