The second-largest cryptocurrency by market capitalization, Ethereum (ETH), is struggling to regain lost ground after starting a downtrend on September 21, 2023. Despite a modest rebound, ETH faces challenges on its path to redemption.
Ethereum price expects a recovery wave from $1,565 against the US Dollar. ETH could rise steadily if it settles above $1,600 and $1,620.
Ethereum is attempting a recovery wave above the $1,580 level. The price is trading above $1,590 and the 100 hourly simple moving average.
There was a break above a major downtrend line with resistance near $1,590 on the hourly chart of ETH/USD (data via Kraken). The pair could start a recovery wave if there is a close above $1,600 and $1,620.
Ethereum Price Signals Recovery
Ethereum price remained well bid above the $1,565 level. ETH appears to be forming a base above $1,565 and is slowly rising, like Bitcoin.
The price was able to recover above the $1,580 and $1,590 levels. There was a move above the 23.6% Fibonacci retracement level of the downward move from the high of $1.669 to the low of $1.565.
Additionally, there was a break above a major downtrend line with resistance near $1,590 on the hourly chart of ETH/USD. Ethereum is now trading above $1,590 and the 100 hourly simple moving average.
On the upside, the price could face resistance near the $1,600 level. The next major resistance is $1,620. It is close to the 50% Fibonacci retracement level of the downward move from the high of $1,669 to the low of $1,565. A push above $1,620 could see Ether rise further and there are chances of a continued rise.
The next major resistance is near $1,650 and $1,660. If the bulls manage to clear the $1,660 hurdle, the price could start a decent rise towards the $1,720 resistance. Any further gains could open the doors to a move towards $1,800.
Another Fall in ETH?
If Ethereum fails to overcome the $1,620 resistance, it could start another decline. Initial support on the downside is near the $1,580 level. The next key support is $1,565, below which the price could test the support at $1,540.
If the bulls fail to protect the $1,540 support, there could be a sharp decline. In the indicated case, there could be a drop towards the $1,440 level.
As of the MACD Hourly Technical Indicators, the MACD for ETH/USD is losing momentum in the bearish zone. The RSI for ETH/USD is now above the 50 level. The Main Support Level is $1,565, while the Main Resistance Level stands at $1,620.
Ethereum’s recent drop, below key support levels, indicates increasing selling pressure. Although the cryptocurrency has attempted a short-term recovery, the road to redemption remains challenging. The $1,600 resistance level represents a significant hurdle for ETH and failure to overcome it could trigger a further decline. Currently, ETH has seen a modest bounce and is trading at $1,595, marking a 1.26% price increase in the last 24 hours.
An informed and strategic approach is crucial to navigating the future paths of Ethereum (ETH), considering the multifaceted influences affecting its progress. If you think there are too many influences pushing this coin in different directions, feel free to opt for projects like ScapesMania, which are more focused and less susceptible to pressure.
By Leonardo Pérez