Ethereum Price Continues to Slide Below $1,550 Levels
Ethereum’s price has experienced a decline below the crucial $1,550 support against the US Dollar. While the cryptocurrency is now recovering some of its losses, it is expected that any further upsides may be capped near the $1,620 level.
The decline in Ethereum’s price can be attributed to its bearish momentum below the $1,580 and $1,550 levels. Additionally, the price is currently trading below $1,600 and the 100-hourly Simple Moving Average. This indicates a negative trend for the cryptocurrency.
On the hourly chart of ETH/USD, a significant bearish trend line is forming with resistance near $1,605. This line serves as an important point of resistance for Ethereum‘s price movement. While there might be a correction higher, it is speculated that the bears will remain active near the $1,600 and $1,620 levels.
Ethereum’s Failure to Settle Above $1,620 Pivot Level
Ethereum’s price recently faced a setback as it failed to settle above the $1,620 pivot level. Similar to Bitcoin, Ethereum experienced a fresh decline and settled below the $1,600 level.
The decline continued further below the $1,580 and $1,550 levels, resulting in a retest of the $1,530 zone. However, the price is now correcting these losses.
Ether is currently trading below $1,600 and the 100-hourly Simple Moving Average, indicating a bearish trend. In addition, there is a key bearish trend line forming with resistance near $1,605 on the hourly chart of ETH/USD.
Factors Affecting Ethereum’s Price Movement
On the upside, Ethereum’s price is likely to face resistance near the $1,600 level or the 50% Fib retracement level of the downward move from the $1,670 swing high to the $1,530 low. The next resistance is near the $1,605 level or the trend line.
The first significant resistance level is positioned at $1,620, and a successful breach of this level could push the price towards the $1,650 mark. Moreover, a close above the $1,670 level might result in Ethereum surging even higher towards $1,750.
Potential for Another Decline in ETH
However, if Ethereum fails to break the $1,600 resistance level, it is likely to encounter another decline. The initial support level on the downside is near $1,550, followed by a key support level close to $1,530. If the price continues to fall, there is a possibility of it dropping towards the $1,440 level in the near term.
Analyzing the technical indicators, the MACD indicator for ETH/USD is gradually losing momentum in the bearish zone, while the RSI indicator has dropped below the 50 level.
Overall, Ethereum’s price is facing significant challenges as it struggles to recover from its recent decline. It remains to be seen whether the cryptocurrency can regain its bullish momentum or if it will face further downward pressure.
Source: ETHUSD on TradingView.com
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