Ethereum Struggles to Maintain Support as Price Dips Below $1,600
The price of Ethereum (ETH) has experienced a setback in its recent attempt to surpass the $1,600 mark against the US dollar. As a result, the cryptocurrency is now facing difficulties in sustaining support above the $1,550 zone.
Ethereum’s decline has continued, reaching the $1,550 support level. Currently, the price is trading slightly below $1,580 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a bearish trend line is forming with resistance near $1,570. If the bulls fail to protect the $1,550 support, the cryptocurrency could experience further downward pressure.
In recent trading sessions, Ethereum struggled to settle above $1,650 and began a fresh decline. Despite a brief consolidation phase, the price failed to gain traction and dropped below the $1,575 support level. This decline resulted in a test of the $1,550 level, with a low formed near $1,553. Currently, Ethereum is consolidating its losses.
The ongoing struggle for Ethereum is evident as the price attempts to break through key resistance levels. The $1,570 level and the aforementioned bearish trend line are acting as formidable obstacles. Additionally, the 23.6% Fibonacci retracement level of the downward move from the $1,669 swing high to the $1,553 low is located just above the trend line.
The first major resistance level that Ethereum must overcome is the $1,600 zone or the 50% Fibonacci retracement level. A successful breach of this level could trigger a decent increase, potentially pushing the price towards the $1,660 resistance. Further gains may even open the doors for a move towards $1,720.
However, if Ethereum fails to clear the $1,570 resistance, it could enter another downward spiral. The immediate support level lies near $1,550, followed by a more significant support level at $1,520. A break below $1,520 could result in further losses, potentially causing the price to drop towards $1,480. In an even more bearish scenario, Ethereum may test the $1,420 level.
Analyzing the technical indicators, hourly Moving Average Convergence Divergence (MACD) reveals that ETH/USD is losing bullish momentum. Additionally, the Relative Strength Index (RSI) is currently below the 50 level.
In conclusion, Ethereum is struggling to maintain support above the $1,550 level. The failure to surpass resistance levels poses further risks for the cryptocurrency’s price. However, a breakthrough above $1,600 could signal a potential recovery for Ethereum, with higher resistance levels at $1,660 and $1,720. On the other hand, a failure to clear the $1,570 resistance may result in more losses. Traders and investors should closely monitor these key levels to determine the future path of Ethereum’s price.