July 24, 2024
Blockchain News

Ethereum Struggles to Maintain Support, Potential for Further Losses

Ethereum (ETH) is facing a challenging period as it trades below the critical $1,600 support level and the 100-hourly Simple Moving Average (SMA). Cryptocurrency enthusiasts and traders closely watch the charts as Ethereum’s price dynamics could significantly impact the broader market.

Per the latest data feed via Kraken, a critical bearish trend line is forming with resistance near the $1,600 mark on the hourly ETH/USD chart. This trend line is a formidable barrier, limiting Ethereum’s upward movement and signalling possible bearish sentiment in the market.

Consequently, the ETH/USD pair is encountering difficulties, and there’s a looming possibility of a further dip towards the $1,500 support level in the short term. Ethereum is in a bearish zone, much like its counterpart, Bitcoin.

Moreover, Ethereum’s price dipped below the $1,580 level and has settled below the 100-hourly SMA. The decline culminated in a low point near $1,571. The cryptocurrency is in a consolidation phase, testing the 23.6% Fibonacci retracement level of the recent decline from its $1,600 swing high to the low mentioned above.

Adding to Ethereum’s woes, it trades below the $1,580 and the 100-hourly SMA. The hourly chart for ETH/USD reveals the presence of another crucial bearish trend line, with resistance around the $1,600 mark.

On the upside, Ethereum could face resistance at approximately $1,590, closely aligned with the recent decline’s 61.8% Fibonacci retracement level from the $1,600 high to the $1,571 low. The next significant resistance level is those above $1,600, coinciding with the prevailing bearish trend line.

However, the primary obstacle lies at approximately $1,620. A successful break above this resistance could propel Ethereum towards the $1,650 resistance level, and in a bullish scenario, even as high as $1,720. Such gains would undoubtedly open the doors for further upward momentum, possibly reaching $1,820.

Nevertheless, if Ethereum fails to breach the $1,600 resistance, it might initiate another downtrend. Initial support awaits near the $1,570 level, with a more substantial support barrier at $1,540. A breach below $1,540 could lead to further losses and a descent into a pronounced bearish trend, with the $1,500 level looming as a potential target.

Analysing the technical indicators, the hourly Moving Average Convergence Divergence (MACD) for ETH/USD suggests a strengthening bearish momentum, while the Relative Strength Index (RSI) is currently below the 50 level.

In conclusion, Ethereum’s price trajectory is pivotal, with $1,600 serving as a critical battleground for bulls and bears. Traders closely monitor the situation as further losses could impact the broader cryptocurrency market.