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Writer's pictureSarah Dixon

Ethereum bears hold, ETH could drop below $1,600.


Ethereum bears hold, ETH could drop below $1,600.
Ethereum bears hold, ETH could drop below $1,600.

Ethereum price tested the $1,600 zone and is currently recovering against the US Dollar. ETH is facing many hurdles near $1,650 and $1,670.

  • Ethereum started a recovery wave from the $1,600 support level.

  • The price is trading below $1,650 and the 100-hourly Simple Moving Average.

  • There is a connecting bearish trend line forming with resistance near $1,665 on the hourly chart of ETH/USD (data feed via Kraken).

  • The pair could start a fresh increase unless there is a close above the $1,700 level.

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Ethereum bears hold, ETH could drop below $1,600. Ethereum Price Faces Key Resistance

The price of Ethereum has experienced a decline below the support zone of $1,650. It even went below $1,620 and tested the $1,600 handle, similar to Bitcoin's situation. However, it has recently started an upward correction and climbed above the 23.6% Fib retracement level. Despite this, Ether is still trading below $1,650 and the 100-hourly Simple Moving Average. Resistance levels are forming near $1,650 and $1,665, with the next resistance level close to the 50% Fib retracement level. Ethereum bears hold, ETH could drop below $1,600.


Source: ETHUSD on TradingView.com
Source: ETHUSD on TradingView.com

If Ethereum manages to close above the $1,665 level, it could potentially reach the $1,700 zone. However, in order to initiate a new upward trend, it needs to settle above the $1,700 pivot level. The next resistance level could be around $1,750, and any further gains may push the price towards the $1,800 resistance level.


Another Decline in ETH?

In the event that Ethereum is unable to surpass the resistance at $1,665, it may experience a further decline. The initial support on the downside is in the vicinity of $1,630. The first significant support is located near $1,600, followed by a major support level at around $1,580. If the price falls below $1,580, it could extend its decline towards $1,540. In the near future, any additional losses may push the price towards the $1,480 level.


Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,600

Major Resistance Level – $1,665


Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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