Ethereum Price Analysis: A Possible Recovery Above $1,650
Recently, Ethereum’s price appears to be set for a recovery phase above the $1,650 mark against the US Dollar. However, for this hopeful steady increase to manifest, Ethereum must clear certain hurdles at the $1,660 and $1,700 levels.
Previously Noted Market Trends
- The Ethereum market seems to be experiencing some difficulties in breaking above the levels of $1,660 and $1,670.
- At present, Ethereum’s price is trading at a close proximity to $1,650 and is also close to the 100-hourly Simple Moving Average (SMA).
- A significant upwards movement occurred with ETH able to break above an associated bearish trend line. This line of resistance was approximately at $1,650 on the hourly chart of ETH/USD (data based on Kraken).
- Potential for a sizeable increase can be imagined if Ethereum can manage to clear the $1,660 and eventually the $1,700 levels.
What’s Next for Ethereum?: Analyzing Its Momentum
Ethereum managed to position itself above the $1,640 level. This suggests that like Bitcoin, it may be attempting a recovery phase above the current $1,650 resistance zone.
In recent developments, a breakthrough occurred beyond the connecting bearish trend line that had resistance nearly at $1,650 on the hourly chart of ETH/USD. This said, the bulls are currently facing a significant resistance at roughly the $1,660 level or the 50% Fib retracement level of the downward move which swung from a high $1,698 to a low of $1,621.
Ethereum is currently trading in proximity to $1,650 as well as in the 100-hourly Simple Moving Average. As the price moves upwards, Ethereum might face resistance around the $1,660 mark. The following resistance is estimated to be around the $1,670 level or the 61.8% Fib retracement level which saw a drop from $1,698 to the $1,621 low.
Source: ETHUSD on TradingView.com
If Ethereum can manage to maintain itself above the $1,670 mark, the price is likely to propel towards the pivot zone of $1,700. To trigger a significant increase, it’s crucial for Ethereum to settle itself firmly above the level of $1,700. In a circumstance where this occurs, a potential surge could be predicted towards the $1,780 level. However, if Ethereum experiences any further gains, the price surge might extend to the $1,850 resistance level.
Could Ethereum Face a Decline?
Unfortunately, if Ethereum is unable to break the $1,660 resistance level, the alternative scenario is a fresh low. Early signs for a decline might be revealed if we see support around the $1,640 threshold.
The subsequent crucial support level is an estimated close proximity in relation to the $1,620 level. Moreover, if a downside break occurs, descending further than $1,620, Ethereum’s price might rapidly drop towards the $1,580 level. More severe losses could potentially result in the price of Ethereum falling closer towards $1,540 in the shorter term than expected.
Key Technical Indicators
- Hourly MACD – The MACD for ETH/USD seems to be losing its bullish momentum.
- Hourly RSI – At the moment, the RSI for ETH/USD is above the 50 score.
- Major Support Level – This is currently at $1,640.
- Major Resistance Level – This rests at $1,660.