Ethereum’s price has been hovering below the key resistance levels of $1,775 and $1,780 despite showing signs of recovery after testing the $1,720 zone. Similar to Bitcoin, ETH has been forming a support base at this level and is attempting a wave of recovery. The price has slowly climbed above the $1,740 mark and has broken through a critical downtrend line with a resistance near $1,740 on the hourly chart of ETH/USD.
Currently, Ethereum tests the 23.6% Fib retracement level of the main downside swing from the swing high of $1,854 to the low of $1,718. However, the trade price is still below $1,780 and the 100-hour Simple Moving Average. The immediate resistance level is close to the $1,770 zone and the 100-hour Simple Moving Average, while the next significant resistance is close to the $1,785 mark, which is near the 50% Fib retracement level of the primary downside swing from the swing high of $1,854 to the low of $1,718.
If Ethereum successfully breaks through the resistance levels of $1,770 and $1,785, the price could potentially move towards $1,820, followed by $1,850, and then $1,880. Moreover, further increases over the resistance zone of $1,880 could take the price towards the $1,920 resistance.
However, if the price fails to break through the resistance of $1,770, it could lead to another decline, with the first support level being near the $1,730 mark, followed by the significant support level of $1,720. If there is a breakthrough and closure below the $1,720 support level, the price could gain a bearish momentum towards the $1,640 support level, and continued losses could potentially take the price towards the $1,600 zone.
Looking at the technical indicators, the hourly MACD for ETH/USD is losing momentum in the downtrend zone, while the hourly RSI is now above the 50 mark. The significant support level for Ethereum’s price is at $1,720, while the primary resistance level is at $1,780.