Ethereum’s value retraced its gains, revisiting the $1,580 mark against the US dollar. If it fails to hold above the $1,600 support, ETH may see further downside.
Ethereum initiated a new downtrend, breaching the $1,650 support level.
Currently, the price is trading below both $1,665 and the 100-hourly Simple Moving Average.
On the hourly chart of ETH/USD (data feed via Kraken), a significant bearish trend line is forming, with resistance around $1,645.
To regain momentum, the pair needs to surmount the obstacles at $1,650 and $1,665. If successful, it could initiate a fresh upward movement.
Ethereum’s Value Returns to Test Support Levels
Ethereum’s price struggled to maintain its position above the $1,665 mark, entering a bearish phase alongside Bitcoin. The decline was significant, with the price briefly dropping below $1,600 on Kraken. It subsequently retested the critical support level at $1,585, finding a low point around $1,585 before attempting a fresh recovery. The price managed to surpass the $1,620 level.
Ether made progress by surpassing the 23.6% Fibonacci retracement level of the downward movement from the $1,743 peak to the $1,585 low. However, Ethereum currently trades below $1,665 and is positioned beneath the 100-hourly Simple Moving Average.
Looking ahead, the price could encounter resistance around the $1,650 level, along with the presence of a significant bearish trend line forming, with resistance at approximately $1,645, as indicated on the hourly ETH/USD chart. The next significant resistance levels lie at $1,665 and the 100-hourly Simple Moving Average.
![](https://sollcrypto.com/wp-content/uploads/2023/10/Screen-Shot-2023-10-04-at-1.59.42-PM.png)
The 50% Fibonacci retracement level, calculated from the drop between the $1,743 peak and the $1,585 low, coincides closely with the $1,665 level. A decisive breakthrough above the resistance at $1,665 has the potential to initiate a new upward momentum. Under this scenario, the price may target the $1,700 resistance level, followed by a significant hurdle at $1,750. Further gains could potentially pave the way for a move towards the $1,820 mark.
More Losses in ETH?
Should Ethereum struggle to surpass the $1,665 resistance, there’s a risk of further downward movement. Initial support to watch on the downside lies near the $1,620 level, with the subsequent key support at $1,600.
A breach below the critical $1,600 support level could potentially trigger a robust bearish trend. In such a scenario, there’s a possibility that the price might even dip below the $1,585 mark, potentially leading Ether toward the $1,540 level.
Technical Indicators:
Hourly MACD – The MACD indicator for ETH/USD is displaying a loss of momentum in the bearish territory.
Hourly RSI – The RSI indicator for ETH/USD has now dipped below the 50 level.
Significant Support Level – $1,600
Significant Resistance Level – $1,665