Ethereum price is struggling to stay above the $1,620 support against the US dollar. ETH must clear the $1,665 hurdle to start a fresh increase.
- Ethereum trimmed all gains and now trading near the $1,630 level.
- The price is trading below $1,660 and the 100-hourly Simple Moving Average.
- There is a connecting bearish trend line forming with resistance near $1,650 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it clears the $1,650 and $1,665 resistance levels.
Ethereum Price Holds Support
Ethereum managed to recover and stay above the $1,620 pivot level. Yesterday, we discussed a bearish reaction in ETH below the $1,650 level, like Bitcoin.
A swing low was formed near $1,585 before the price recovered above $1,620. It is now consolidating above the 23.6% Fib retracement level of the downward move from the $1,742 swing high to the $1,585 low. It seems like the bears are active below the $1,650 level.
Ethereum is now trading below $1,660 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $1,650 level. There is also a connecting bearish trend line forming with resistance near $1,650 on the hourly chart of ETH/USD.
The next major resistance is $1,665 and the 100-hourly Simple Moving Average. It is close to the 50% Fib retracement level of the downward move from the $1,742 swing high to the $1,585 low.
Source: ETHUSD on TradingView.com
A clear move above the $1,665 resistance zone could start a decent increase. In the stated case, the price could visit the $1,700 resistance. The next key resistance might be $1,720. Any more gains might open the doors for a move toward $1,750.
Another Drop in ETH?
If Ethereum fails to clear the $1,665 resistance, it could start another decline. Initial support on the downside is near the $1,630 level. The next key support is $1,620.
The first major support is now near $1,585. A downside break below the $1,585 support might start another strong bearish wave. In the stated case, the price could even visit the $1,540 level. In the stated case, there is a risk of a drop toward the $1,500 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,620
Major Resistance Level – $1,665