Ethereum’s attempt to initiate a new upswing above $1,600 against the US dollar fell short, leaving ETH in a precarious position as it struggles to maintain its foothold above the crucial $1,550 support level.
Ethereum’s downward momentum persisted, with the price testing the critical $1,550 support area. Currently, it hovers just below $1,580 and is positioned below the 100-hourly Simple Moving Average. Furthermore, a bearish trend line is taking shape on the hourly chart of ETH/USD, indicating resistance around $1,570 (data source: Kraken). Should the bulls prove unable to defend the $1,550 support, there is a possibility of a heightened downside momentum in the pair.
Ethereum’s Value Experiences a Deeper Decline
Ethereum grappled with maintaining levels above $1,650 but eventually initiated a fresh decline, breaching both the $1,620 and $1,600 support thresholds. After a brief consolidation phase, the price continued to slide, setting it apart from Bitcoin’s performance.
The descent carried Ethereum below the $1,575 support, with the price eventually testing the $1,550 mark. A low was established around $1,553, and the price is presently in a phase of consolidating these losses. Additionally, there’s a bearish trend line emerging, featuring resistance close to $1,570 on the ETH/USD hourly chart.
As of now, Ethereum is trading slightly below $1,580, just under the 100-hourly Simple Moving Average. Looking upwards, resistance is encountered around the $1,570 level and the mentioned trend line. Furthermore, the 23.6% Fibonacci retracement level, calculated from the drop from the $1,669 swing high to the $1,553 low, sits just above the trend line.
The initial major hurdle is situated near the $1,600 zone, or the 50% Fibonacci retracement level based on the descent from the $1,669 swing high to the $1,553 low.
If Ethereum manages to secure a breakthrough above the $1,600 resistance level, it could potentially trigger a notable uptrend. Under such circumstances, Ether may experience a rebound and head towards the $1,660 resistance point. Further advancements could pave the way for an upward trajectory, possibly reaching as high as $1,720.
Is Ethereum Poised for Further Declines?
Should Ethereum be unable to surpass the $1,570 resistance, there is a potential for a renewed downturn. Initial support is found around the $1,550 mark.
The subsequent critical support level rests at $1,520. A break below this support could lead to further price depreciation. Under such circumstances, the price might descend towards the $1,480 level. Should the losses persist, Ether could potentially reach the $1,420 mark.
Technical Indicators:
- Hourly MACD: The MACD for ETH/USD is exhibiting a decline in bullish momentum.
- Hourly RSI: The RSI for ETH/USD has dipped below the 50 level.
Significant Support Level: $1,550
Crucial Resistance Level: $1,570