Ethereum price is attempting a recovery wave above the $1,620 level against the US dollar. ETH could start another drop if it stays below 100 SMA per hour.
- Ethereum is struggling to recover above the USD 1,690 and USD 1,700 levels.
- The price is trading below $1,700 and the 100-hour Simple Moving Average.
- There was a break above a contiguous bearish trendline with resistance near USD 1,670 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could resume its decline if it stays below the USD 1,700 level in the near term.
Ethereum price faces hurdles
Ethereum price declined sharply below the USD 1,700 level. ETH tested the $1,520 zone and recently started a decent recovery wave similar to Bitcoin.
There was a move above the $1,550 and $1,600 levels. The price climbed above the 50% Fib retracement level of the downward move from the $1,825 swing high to the $1,518 low. In addition, there was a break above a contiguous bearish trendline with resistance near $1,670 on the ETH/USD hourly chart.
However, the bears are still operating below the $1,680 level. Ether also trades below $1,700 and the 100-hour Simple Moving Average. On the upside, the price may encounter resistance near the $1,690 level. The next resistance is near $1,700 or the 100-hour Simple Moving Average.
Source: ETHUSD at TradingView.com
The 61.8% Fib retracement level of the downward move from the $1,825 swing high to the $1,518 low is also near the $1,700 zone. A close above the USD 1,700 level could spark a decent rise in the near term. The next major resistance is near the $1,750 level. More gains could send the price towards the $1,820 resistance, above which the price could rise towards the $1,880 zone.
New Decline in ETH?
If Ethereum fails to clear the $1,700 resistance, it could fall further. The first support on the downside is near the $1,640 level.
The first major support is near the $1,600 zone. If the bulls fail to protect the $1,600 support, there could be more losses. The next major support is near the $1,550 support level. Any more losses could send the price towards the $1,520 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 near the 50 level.
Major Support Level – $1,600
Major resistance level – $1,700