Ethereum's price has failed to sustain recovery above the $1,700 threshold and subsequently dropped below $1,550, with the cryptocurrency now attempting to correct losses while facing significant resistance near the $1,620 zone. Technical indicators suggest ETH remains at risk of further declines if it cannot overcome current resistance levels.
What to Know:
- Ethereum has fallen below both the $1,620 support level and the 100-hourly Simple Moving Average
- A bearish trend line has formed with resistance at $1,615 on the hourly ETH/USD chart
- The cryptocurrency touched a low of $1,410 before showing signs of a modest recovery
Recovery Efforts Meet Strong Resistance
Ethereum's price trajectory has mirrored Bitcoin's recent performance, failing to maintain support above the $1,700 zone and experiencing substantial losses.
The downward momentum pushed ETH below several key support levels at $1,650 and $1,620, with bears driving the price even further down past the $1,550 mark.
The cryptocurrency established a low point of $1,410 before beginning a modest recovery phase. This corrective movement allowed ETH to climb back above the $1,550 level, surpassing the 23.6% Fibonacci retracement level of the downward movement from the $1,815 swing high to the $1,410 low. Despite this minor rebound, seller activity remains pronounced near the $1,620 zone.
Currently trading below both the $1,620 threshold and the 100-hourly Simple Moving Average, Ethereum faces multiple technical hurdles. The price appears to be meeting significant resistance around the $1,615 level, coinciding with a connecting bearish trend line visible on the hourly ETH/USD chart. This resistance aligns closely with the 50% Fibonacci retracement level of the recent downward movement from $1,815 to $1,410.
Should the cryptocurrency overcome immediate resistance, the next significant barrier awaits near $1,660. The first major resistance level is positioned around $1,720, with a decisive move above this point potentially sending ETH toward the $1,820 resistance threshold. A successful breach above $1,820 could trigger additional gains in upcoming sessions, potentially pushing Ether toward resistance zones at $1,880 or even $1,920 in the near term.
Potential for Further Downside Movement
If Ethereum fails to surmount the $1,620 resistance level, analysts anticipate another decline may be imminent. Initial downside support exists near the $1,540 mark, with the first major support positioned around the $1,505 zone.
A definitive move below the $1,505 support could accelerate the price decline toward the $1,420 level. Continued selling pressure might drive ETH further down to the $1,380 support threshold in the near term, with the next key support positioned at $1,320.
Technical indicators provide mixed signals for ETH's immediate prospects. The hourly MACD for ETH/USD appears to be losing momentum in the bullish zone, while the hourly RSI currently sits above the 50 zone, suggesting some underlying strength remains despite overall bearish pressure.
The short-term outlook hinges critically on whether Ethereum can overcome resistance at the $1,620 level. Failure to do so would likely confirm the bearish scenario, potentially triggering another significant leg down in the cryptocurrency's valuation.
The recent price action has left many investors reassessing their positions, with some technical analysts pointing to the connecting bearish trend line as a particularly concerning development.
This formation typically suggests continued selling pressure unless decisively broken to the upside.
Volume patterns during the recent decline have been notably high, indicating widespread participation in the selling activity. The recovery attempt has occurred on comparatively lower volume, a pattern that often suggests limited conviction behind upward price movements.
Looking Ahead
Ethereum's price action remains heavily influenced by broader cryptocurrency market trends, with current technical structures pointing to continued challenges. The cryptocurrency must overcome multiple resistance levels to regain bullish momentum, while support zones below current prices will be crucial in preventing further significant losses.