Ethereum is currently undergoing a recovery wave from its recent low of $1,565 against the US Dollar. While this may seem like a positive sign, there are potential obstacles that could impede its progress. One major challenge is the $1,600 resistance level, which Ethereum must surpass in order to continue its upward momentum. However, given the current state of the market, it is uncertain whether Ethereum will be able to overcome this hurdle.
As of the moment, Ethereum is slowly making its way towards the $1,600 resistance zone. Nevertheless, it is still trading below this level as well as the 100-hourly Simple Moving Average. This indicates that the market sentiment is still bearish and that Ethereum may struggle to break through the resistance in the near future. Additionally, a major bearish trend line is forming with resistance near $1,595 on the hourly chart of ETH/USD, further adding to the challenges faced by Ethereum.
Ethereum experienced a recent decline below the key levels of $1,620 and $1,600. Contrary to Bitcoin, Ethereum even reached a new weekly low of $1,565. However, it has since started an upside correction, with a slight climb above the $1,580 level. This upward movement was mainly driven by the 50% Fib retracement level of the recent drop from the $1,600 swing high to the $1,565 low. Nonetheless, the bears are still active near the $1,600 resistance, hindering Ethereum’s progress.
If Ethereum manages to break above the current $1,600 resistance, it could proceed towards the $1,620 level. Successful clearance of this barrier may pave the way for a decent increase towards the $1,650 resistance. Furthermore, if the bulls persist, Ethereum might even reach as high as $1,700. However, if Ethereum fails to surpass the $1,600 resistance, it could initiate another decline. The initial support in this scenario would be near the $1,580 level, followed by the key support at $1,565. A further downside break below $1,540 might push the price even lower into a bearish zone, with a potential drop towards the $1,500 level.
The hourly MACD for ETH/USD is currently losing momentum in the bearish zone, suggesting that the bears still have a strong hold over the market. On the other hand, the hourly RSI for ETH/USD is now above the 50 level, indicating a slight shift towards bullish sentiment. However, it is important to note that these technical indicators are not definitive and should be interpreted with caution.
Ethereum’s price recovery from its recent low is facing several challenges. The $1,600 resistance remains a major obstacle that it must overcome in order to continue its upward trajectory. Without a clear breakthrough, Ethereum may struggle to recover and could potentially resume its decline in the future. Traders and investors should closely monitor the price action and key levels to determine the market’s next move.
