The price of Ethereum (ETH) is currently attempting to recover from a low of $1,565 against the US Dollar. However, it may face difficulties in surpassing the $1,600 mark and could potentially resume its decline. As of now, Ethereum is gradually moving higher towards the $1,600 resistance zone. Nevertheless, it remains trading below $1,600 and the 100-hourly Simple Moving Average.
On the hourly chart of ETH/USD, a significant bearish trend line is forming with resistance near $1,595. This trend line presents a major obstacle for Ethereum’s price to overcome. If the price fails to clear the $1,600 resistance zone, it could trigger a fresh decline for ETH.
In recent days, Ethereum experienced a fresh decline below the $1,620 and $1,600 levels. Unlike Bitcoin, ETH even reached a new weekly low below the $1,580 level, dropping as low as $1,565. However, the price has recently initiated a short-term upside correction. It managed to climb above the $1,580 level and surpass the 50% Fib retracement level of the recent drop from the $1,600 swing high to the $1,565 low.
Despite this correction, bears are actively present near the $1,600 resistance. The price is facing difficulties clearing the 76.4% Fib retracement level of the recent drop. Moreover, Ethereum is currently trading below $1,600 and the 100-hourly Simple Moving Average. The presence of the major bearish trend line near $1,595 further adds to the challenges faced by the price.
The key resistance that Ethereum needs to surpass is $1,600. Only with a push above this level, can ETH move towards $1,620. If successful in clearing the $1,620 hurdle, the price might experience a decent increase towards the $1,650 resistance. Further gains might open the doors for a move towards $1,700.
If Ethereum fails to overcome the $1,600 resistance, it could trigger another decline. The initial level of support on the downside is near $1,580, followed by $1,565. A break below $1,540 might push the price further into a bearish zone, potentially leading to a drop towards the $1,500 level.
Looking at the technical indicators, the MACD for ETH/USD is losing momentum in the bearish zone. On the other hand, the RSI for ETH/USD is now above the 50 level, suggesting a potential shift in momentum.
Ethereum is currently undergoing a slow recovery from its recent decline. However, the price faces significant hurdles in surpassing the $1,600 resistance zone and the presence of a major bearish trend line. Traders and investors should closely monitor the price action and key levels to determine the future direction of Ethereum.
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