Ethereum Faces Crucial Resistance at $1,670, but Bulls Remain Hopeful;
Ethereum, the second-largest cryptocurrency by market capitalization, has been facing a significant hurdle as it attempts to clear the $1,670 resistance level. Despite its recent struggles, the cryptocurrency market remains optimistic about its potential for a fresh uptrend.
Currently trading above $1,630 and maintaining its position above the 100-hourly Simple Moving Average, Ethereum showed strength. The bulls managed to break above a key bearish trend line with resistance at $1,628, as observed on the hourly chart of ETH/USD.
However, the crucial challenge lies in Ethereum’s ability to maintain support above the $1,620 zone. This support zone is pivotal for initiating a new upward trajectory in the short term.
Ethereum’s price notably increased, surpassing the $1,620 resistance mark. It reached above $1,650, mirroring a similar trend to Bitcoin’s recent performance. During this bullish momentum, the cryptocurrency saw a breakthrough of the bearish trend line at $1,628.
The bears entered the scene as Ethereum approached the $1,670 resistance level. The price reached a peak at $1,669 before starting a corrective descent. The decline led to a breach of the $1,650 level and a dip below the 50% Fibonacci retracement level, calculated from the low of $1,613 to the high of $1,669.
Currently, Ether is trading above $1,630 and the 100-hourly Simple Moving Average, positioning itself near the 61.8% Fibonacci retracement level. While the $1,650 level presents immediate resistance, the major obstacle remains at $1,670.
A close above the $1,670 resistance could pave the way for a push toward the $1,720 resistance and, potentially, the $1,750 level. Should Ethereum break past $1,750, it may reach $1,880 in the coming days.
However, Ethereum faces downside risks if it fails to clear the $1,650 resistance. In such a scenario, initial support can be found near the $1,630 level, coupled with the 100-hourly Simple Moving Average. The critical support zone lies at $1,620, and any further drop could bring the $1,600 level into play, potentially sparking a new bearish trend.
Analyzing the technical indicators, the hourly MACD for ETH/USD suggests a waning bullish momentum, while the hourly RSI is now below the 50 level, indicating a potential shift in market sentiment.
In conclusion, Ethereum’s struggle to surpass the $1,670 resistance level is pivotal for the cryptocurrency. Bulls are hopeful for a fresh rally, but the path remains uncertain. Traders should closely monitor support and resistance levels as Ethereum charts its course in the coming days.