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Ethereum Price Stages Recovery But Can It Overcome This Key Hurdle?
Ethereum price is eyeing a recovery wave from $1,565 against the US Dollar. ETH could rise steadily if it settles above $1,600 and $1,620.
Ethereum Price Signals Recovery
Ethereum’s price remained well-bid above the $1,565 level. ETH seems to be forming a base above $1,565 and is slowly moving higher, like Bitcoin.
The price was able to recover above the $1,580 and $1,590 levels. There was a move above the 23.6% Fib retracement level of the downward move from the $1,669 swing high to the $1,565 low. Besides, there was a break above a major bearish trend 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 might face resistance near the $1,600 level.
The next major resistance is $1,620. It is close to the 50% Fib retracement level of the downward move from the $1,669 swing high to the $1,565 low. A push above $1,620 might send Ether further higher and there are chances of a steady increase.
Source: ETHUSD on TradingView.com
The next major resistance is near $1,650 and $1,660. If the bulls succeed in clearing the $1,660 hurdle, the price could start a decent increase toward the $1,720 resistance. Any more gains might open the doors for a move toward $1,800.
Another Drop in ETH?
If Ethereum fails to clear 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 $1,540 support. If the bulls fail to protect the $1,540 support, there could be a sharp decline. In the stated case, there could be a drop toward the $1,440 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 above the 50 level.
Major Support Level – $1,565
Major Resistance Level – $1,620