Ethereum’s price has been struggling to overcome the $1,660 resistance against the US dollar. As a result, ETH is at risk of further losses if it fails to hold above the critical $1,550 support level.
Price Decline and Retest
After an unsuccessful attempt to settle above the $1,665 resistance zone, Ethereum started a fresh decline. It dipped below $1,650 and even breached the $1,600 level along with the 100-hourly Simple Moving Average. Eventually, Ethereum retested the crucial $1,550 support, forming a low at approximately $1,549.
Following the dip, Ethereum is making an attempt to recover. The price managed to climb above the 23.6% Fibonacci retracement level of the recent drop from the $1,664 swing high to the $1,549 low.
Key Resistance Levels
However, ETH still faces hurdles on the upside. A significant bearish trend line has formed, presenting resistance near $1,610 on the hourly chart of ETH/USD. The initial major resistance is near the $1,600 level, which is closely followed by the aforementioned trend line. This area also aligns with the 50% Fibonacci retracement level of the recent decline.
Source: ETHUSD on TradingView.com
The subsequent major resistance awaits at $1,620 or the 100-hourly Simple Moving Average. If Ethereum surpasses these hurdles, it might target the $1,665 resistance zone. A successful close above this level could pave the way for further gains, with potential targets at $1,750 and $1,820, followed by the possibility of a move towards $1,880.
Potential Downside Scenario
On the flip side, if Ethereum fails to clear the $1,600 resistance, it may continue its descent. Initial support emerges around $1,565, but the critical level to watch is $1,550. A breach below $1,550 could trigger a renewed downtrend, possibly leading ETH to revisit the $1,465 level. Further losses might expose Ethereum to the $1,420 support level.