Ethereum Price Recovery In Jeopardy? Decoding Key Hurdles To Fresh Increase

2023-10-05 05:22:51

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

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