Ethereum price tested the USD 1,600 zone and it is currently recovering against the US dollar. ETH is facing a lot of hurdles near USD 1,650 and USD 1,670.
- Ethereum started a recovery wave from the USD 1,600 support level.
- The price is trading below $1,650 and the 100-hour Simple Moving Average.
- A connecting bearish trendline is forming with resistance near USD 1,665 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could start a fresh increase unless it closes above the $1,700 level.
Ethereum price is facing significant resistance
Ethereum price extended its decline below the USD 1,650 support zone. ETH price even peaked below USD 1,620 and tested the USD 1,600 value, just like Bitcoin.
A low was formed around USD 1,600 and the price recently started an upward correction. There was a move above the USD 1,620 and USD 1,630 levels. The price climbed above the 23.6% Fib retracement level of the downward move from the $1,748 swing high to the $1,600 low.
Ether continues to trade below $1,650 and the 100-hour Simple Moving Average. In addition, a connecting bearish trendline is forming with resistance around $1,665 on the ETH/USD hourly chart.
On the upside, the price could see resistance near the USD 1,650 level and the 100-hour SMA. The next resistance is near the USD 1,660 level and trendline. It is close to the 50% Fib retracement level of the downward move from the $1,748 swing high to the $1,600 low.
Source: ETHUSD at TradingView.com
A close above the USD 1,665 level could push the price towards the USD 1,700 zone. To start a fresh increase, Ethereum must settle above the USD 1,700 pivot level. The next resistance could be near USD 1,750. Any further gains could push the price towards the USD 1,800 resistance.
Another drop in ETH?
If Ethereum fails to clear the USD 1,665 resistance, it could spark another decline. The initial downside support is near the USD 1,630 level.
The first key support is near USD 1,600. The next major support is near the USD 1,580 level. If there is a downside break below USD 1,580, the price could extend its decline towards the USD 1,540 level. Any further losses could send the price towards the USD 1,480 level in the near term.
Technical indicators
MACD per hour – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,600
Major resistance level – $1,665