Ethereum, the prominent cryptocurrency, is encountering difficulties as it strives to breach the critical resistance points of $1,680 and $1,700. The digital asset’s price currently lingers beneath $1,670 and remains below the 100-hourly Simple Moving Average, signaling ongoing challenges.
A discernible bearish trend line is emerging, indicating resistance around the $1,665 mark on the hourly chart of ETH/USD, with data sourced via Kraken. The cryptocurrency’s trajectory appears to mirror its counterpart, Bitcoin, which confronted resistance near the $1,700 threshold.
After a minor recovery above $1,650, Ethereum managed to ascend above $1,670. However, the rally met resistance close to the $1,700 zone, causing the price to recede. The coin reached a high of $1,698 before undergoing a downward trajectory.
The descent saw Ethereum decline beneath $1,670, prompting a test of the 50% Fibonacci retracement level. This retracement measured the upswing from the $1,580 low to the $1,698 high.
Currently trading below $1,670 and the 100-hourly Simple Moving Average, Ethereum faces the hurdle posed by the aforementioned bearish trend line. The path ahead entails resistance at the $1,670 level and the zone defined by the trend line. Subsequently, the $1,700 zone emerges as the next barrier.
To initiate a substantial recovery phase, Ethereum needs to surpass the $1,700 resistance. This triumph would pave the way for further upside, with significant resistance at $1,780 and potential ascension towards the $1,820 level. Moreover, greater gains could propel the price towards the $1,920 resistance.
However, if Ethereum fails to surmount the $1,700 hurdle, it might continue its descent. The initial support awaits at approximately $1,640. Further down the path, the pivotal $1,620 area offers substantial support, represented by the 61.8% Fibonacci retracement level from the upward movement between the $1,580 low and the $1,698 high.
If downward momentum persists, Ethereum could face more substantial losses. Key support levels of $1,600, $1,520, $1,440, and even $1,320 become increasingly critical in this scenario.
Analyzing the technical indicators, the hourly MACD is displaying diminishing bullish momentum, while the hourly RSI has dipped below the 50 level.
As Ethereum navigates this complex landscape of support and resistance, the crypto community keenly observes the asset’s trajectory for insights into its near-term direction.