TLDR

• Ethereum price has shown a fresh increase above $1,580 and reached a high of $1,668
• ETH is currently facing resistance near $1,640 with support around $1,600
• A clear move above $1,680 could push Ethereum toward $1,720 or even $1,800
• Some analysts question if ETH has bottomed, citing three reasons for potential further decline
• Key support levels to watch include $1,575, $1,280-$1,160, and $890-$715

Ethereum has shown signs of recovery with a recent price increase, but questions remain about whether this upward movement will continue or if more downside is still to come. The second-largest cryptocurrency by market cap has climbed above several resistance levels but now faces important hurdles ahead.

The price of Ethereum formed a base above $1,500 and started a fresh increase, following Bitcoin’s upward trend. ETH gained momentum and moved above the $1,550 and $1,580 resistance levels, with bulls pushing the price even higher above $1,620.

Ethereum (ETH) Price

ETH reached a high of $1,668 before starting a downside correction. The price dipped below the $1,650 support zone and retreated below the 23.6% Fibonacci retracement level of the upward move from the $1,482 swing low to the $1,668 high.
 

Technical Analysis Shows Mixed Signals

Currently, Ethereum is trading below $1,600 and the 100-hourly Simple Moving Average. The price appears to be facing resistance near the $1,640 level, with a connecting bearish trend line forming at this point on the hourly chart.

The next key resistance is around the $1,665 level, followed by a major resistance near $1,680. If Ethereum can break above $1,680, the price might continue toward the $1,720 resistance. A clear move above $1,720 could open the door for further gains, potentially pushing ETH toward $1,750 or even $1,800 in the near term.

On the downside, initial support sits near the $1,600 level. The first major support is around $1,575 and the 50% Fibonacci retracement level of the recent upward move.

If Ethereum fails to hold above $1,575, it could drop toward $1,550. Further losses might send the price toward $1,520, with the next key support at $1,480.
 

Reasons for Potential Further Decline

Despite the recent 18% rally from the previous weekly low, some analysts question whether Ethereum has truly bottomed. There are three main reasons why ETH could potentially drop lower.

First, the weekly price chart shows Ethereum revisiting $1,630, which is the highest volume traded level since February 2021. Since the recent crash pushed ETH below this point, bulls need to flip this hurdle into a support floor. Until then, ETH’s value may continue to decrease.

Second, the Relative Strength Index (RSI) on the weekly chart has not yet hit oversold territory. Historically, major rallies for Ethereum have begun after the RSI reached oversold levels, suggesting that further drops may occur before a sustained recovery.

Third, uncertain macroeconomic conditions could impact crypto markets. The trade tensions between the US and China have caused extra volatility in both stock and crypto markets.
 

Support Levels to Watch

If bearish pressure continues, several support levels come into focus. After the $1,575-$1,550 range, the intermediate demand zone at $1,280 to $1,160 could absorb selling pressure. This area formed in December 2022 and led to a 40% price increase in the following weeks.

The absolute key support extends from $890 to $715, which represents a weekly buy-side imbalance that previously triggered a near 50% price jump.

Upcoming economic events could also introduce more volatility to the market. Investors should stay alert to these developments as they may influence Ethereum’s price direction in the short term.

For now, Ethereum price remains in a state of consolidation as the market decides its next major move. Traders are watching key resistance levels around $1,640-$1,680 to gauge whether the recent recovery can gain further momentum.

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