Ethereum (ETH) continues its downward trajectory, breaking below critical support levels as bears maintain control of the market. Recent analysis had identified the $1,546 support level as crucial, and the current price action suggests further downside potential may be ahead.
Key Technical Levels and Market Analysis
The second-largest cryptocurrency by market cap is showing significant bearish momentum after failing to breach the $1,700 resistance level. Here are the critical levels traders should monitor:
- Current resistance: $1,640
- Major support: $1,580
- 100-hourly SMA: Below $1,620
- Key breakout level: $1,690
Technical Indicators Signal Bearish Momentum
Multiple technical indicators are aligning to suggest continued bearish pressure:
- MACD showing increasing bearish momentum
- RSI trading below 50, indicating bearish control
- Break below bullish trendline at $1,625
- 50% Fibonacci retracement test from $1,472 to $1,690
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Potential Price Scenarios
Two primary scenarios are emerging for ETH’s short-term price action:
Bullish Case
- Break above $1,640 resistance
- Target levels: $1,690, $1,750, and $1,800
- Required: Strong buying volume and market sentiment shift
Bearish Case
- Failure to clear $1,640
- Support levels: $1,580, $1,555, and $1,525
- Worst case scenario: Drop to $1,450
Expert Analysis and Trading Strategy
Given the current market conditions, traders should consider the following strategies:
- Set stop losses below $1,555
- Watch for reversal signals at $1,580
- Consider scaling into positions near support levels
- Monitor Bitcoin correlation for additional confirmation
Frequently Asked Questions
What’s causing Ethereum’s current price decline?
The decline appears to be technical in nature, following rejection at the $1,700 resistance level and broader market uncertainty.
When might ETH price recover?
A recovery could begin once ETH establishes support above $1,640 with sustained buying volume.
What’s the worst-case scenario for ETH price?
Technical analysis suggests potential support at $1,450 if current levels fail to hold.
Technical Indicators Summary:
- MACD: Bearish momentum increasing
- RSI: Below 50, indicating bearish control
- Major Support: $1,580
- Major Resistance: $1,640