Ethereum is showing promising signs of a potential bounce-back after staying rooted above the $1,565 support level. Following Bitcoin’s lead, Ethereum is moving cautiously, building momentum towards breaking crucial resistance points.
Recent developments saw Ethereum ascend past the $1,580 and $1,590 marks. Significantly, the price surpassed the 23.6% Fib retracement level stemming from a drop between the highs of $1,669 and lows of $1,565. Moreover, Ethereum broke free from a significant bearish trend line, encountering resistance near $1,590 on the ETH/USD hourly chart.
Currently, Ethereum is trading north of the $1,590 mark and remains buoyed by the 100-hourly Simple Moving Average. As we look upwards, immediate resistance lurks at the $1,600 bracket.
A more substantial barrier awaits at $1,620, aligning with the recent slide’s 50% Fib retracement level from $1,669 to $1,565. If Ethereum pours through the $1,620 resistance, the cryptocurrency might set its sights higher, moving toward the $1,650 and $1,660 zones. A triumphant surge past $1,660 could pave the way for Ethereum to target the $1,720 region, potentially reaching the $1,800 mark.
Possible Setbacks for Ethereum
However, if Ethereum struggles to clear the $1,620 hurdle, the cryptocurrency might be prone to a downward slide. In such a scenario, Ethereum could find initial support at $1,580. A further decline might retest the $1,565 support. Should this foundation give way, Ethereum could plummet to $1,540. A sustained move below this could spell significant trouble, propelling Ethereum into a deeper dive, potentially touching the $1,440 region.
Technical indicators
Hourly MACD: Ethereum’s MACD is currently seeing a reduced bearish momentum.
Hourly RSI: The RSI for Ethereum has climbed, now sitting above the 50 mark.
Key Support Level: $1,565
Key Resistance Level: $1,620
Ethereum’s immediate future rests on its ability to break and maintain above these pivotal resistance points. Traders and investors will be eagerly watching.
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