Home Cryptocurrency Ethereum Underperforms Bitcoin, Bulls Struggle To Protect Key Support

Ethereum Underperforms Bitcoin, Bulls Struggle To Protect Key Support

by Harry Garcia

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.

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