Ethereum’s Struggle to Break $1,600 and $1,620
The cryptocurrency Ethereum (ETH) is currently facing a challenging movement in the market. Despite a significant attempt to rally above $1,580 against the US Dollar, Ethereum struggles to overpower the resistance level of $1,620. Following its failure to maintain the progress, there is speculation in the industry that it may start another decline.
Key Observations
- Ethereum has been unsuccessful in accelerating its move above $1,600 and $1,620.
- The price continues to trade below $1,600, lower than the 100-hourly Simple Moving Average.
- There is a major bearish trend line phrase appearing with resistance close to $1,600 on the hourly chart of ETH/USD (data collected via Kraken database).
- The pair ETH/USD could possibly roll into another decline if Ethereum fails to close above $1,620.
Specific Analysis: Ethereum’s Challenges in Breaking the $1,600 Mark
Over the past few weeks, Ethereum’s price initiated a positive correction from the $1,530 level, mimicking Bitcoin. In this process, it managed to edge above $1,560 and even $1,580 resistance levels.
This recovery trend saw optimistic bulls in the market driving the price above the 50% Fib retracement level of the significant decline from a $1,670 swing high to the $1,530 low. Despite these developments, Ethereum faced a tough crowd of bears when it reached the crucial resistance at $1,620.
Source: ETHUSD on TradingView.com
Possible Resistance Levels for Ethereum’s Upsurge
Despite the ongoing struggle, Ethereum could relaunch its upward movement. However, it may encounter resistance around the $1,595 level or the trend line. The next resistance is near the $1,620 level. If Ethereum succeeds in closing above the $1,620 resistance, it might start to rise towards the $1,670 resistance mark.
An even more significant challenge lies at the $1,720 level, as a close over this level could propel Ethereum even further, potentially towards $1,800.
Probabilities of Other Dips in Ethereum Price?
If Ethereum faces another setback in breaching the $1,600 resistance, it is plausible that it could endure another downward spiral. Initial support on the downside is close to $1,565.
Potential Support Points for Ethereum’s Devaluation
The first remarkable support is near the $1,550 level. Following that, the next significant support point is $1,530. If Ethereum further experiences a downside break below $1,530, it might push the price lower, potentially hitting the $1,500 zone. In this scenario, the price could even dip towards the $1,440 level in the near term.
Technical Indicators
- Hourly MACD – The MACD for ETH/USD is gradually gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now below the 50 level signifying a bearish trend.
- Major Support Level – $1,550
- Major Resistance Level – $1,620