Ethereum’s key indicators show increasing selling interest below $1,700.

Ethereum's key indicators show increasing selling interest below $1,700.

The Struggle of Ethereum Price Recovery

Ethereum, the second-largest cryptocurrency by market capitalization, has been facing challenges in its price recovery above the $1,700 resistance level against the US Dollar. This struggle has led to concerns of a potential fresh decline if Ethereum fails to break above the $1,700 and $1,720 levels.

Consolidating Below $1,700

Ethereum initially started a recovery wave from the $1,520 zone, managing to surpass the $1,550 and $1,580 levels, following a similar trend to Bitcoin. However, it has been unable to sustain its upward momentum, encountering resistance at the crucial levels of $1,700 and $1,720.

As a result, the price has started to move lower and is currently trading below both the $1,700 level and the 100-hourly Simple Moving Average. This downward move is further supported by the formation of a key bearish trend line with resistance near $1,680 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

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The struggle to break above the resistance levels and the bearish trend line suggests a potential decline in the near term. If Ethereum fails to surpass the $1,700 level, it could trigger another drop in its price.

Key Levels and Potential Scenarios

In terms of immediate support, the initial level to watch is near $1,620 or the 50% Fib retracement level of the recovery wave from the $1,517 swing low to the $1,716 high. A break below this level could lead to further losses. The next significant support level stands at approximately $1,600, followed by the $1,565 support level. A breach of these levels might push the price towards the $1,520 level in the near term.

On the upside, Ethereum faces immediate resistance near the $1,680 level and the aforementioned bearish trend line. Further resistance lies at the $1,690 level, followed by the critical levels of $1,700 and $1,720. Breaking above $1,720 could initiate a decent increase in the near term, potentially pushing the price towards the next major resistance levels at $1,750, $1,820, or even $1,880.

Technical Indicators

Analyzing the technical indicators for ETH/USD, the hourly MACD shows a loss in momentum within the bearish zone, indicating a potential continuation of the downward trend. Additionally, the hourly RSI has fallen below the 50 level, further supporting the bearish sentiment.

Summary of Key Points

• Ethereum’s price recovery above $1,700 faces resistance and struggles to break the $1,720 level.
• Failure to clear the resistance might initiate another price decline.
• Immediate support is found near $1,620, followed by $1,600 and $1,565.
• Immediate resistance levels include $1,680, $1,690, $1,700, and $1,720.
• Technical indicators show a loss of momentum and a bearish sentiment in the short term.

In conclusion, Ethereum’s struggle to recover its price above the $1,700 resistance level is a crucial development within the blockchain industry. The outcome of this battle will not only impact Ethereum but also have implications for the broader cryptocurrency market. Market participants will keenly watch for any breakthrough or potential decline, considering the technical indicators and key support and resistance levels.

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