Ethereum is displaying a bearish trend, trading below the critical $1,600 support zone. If the price fails to recover, Ethereum might experience further declines.
Main Points:
- Ethereum is in a bearish zone, gaining pace below the $1,600 level and the 100-hourly Simple Moving Average (SMA).
- The ETH/USD pair, according to data from Kraken, has a significant bearish trend line forming with resistance near $1,600 on its hourly chart.
- If Ethereum fails to surpass the $1,600 and $1,620 resistance levels, it could face another drop, possibly reaching the $1,500 level.
- Conversely, breaking above the $1,620 resistance might drive the price toward the $1,650 resistance level and potentially higher.
Ethereum’s price remains under pressure below the $1,660 and $1,670 resistance levels, further extending its losses below the $1,600 level. It even dropped below $1,580 and is settled below the 100-hourly SMA, creating a low near $1,571. A key bearish trend line with significant resistance near $1,600 is also identified.
😱 Ether Turns Inflationary 😱
💥Ether (ETH) has reverted to be inflationary amid plunging activity on Ethereum
💥 The decline in activity in the network is partly because of the adoption of layer 2 networks, and the trend will continue in the near term#Etherum #Eth pic.twitter.com/vqNKutkygO
— Jungle Inc 2.0 (@jungleincX) September 23, 2023
Ethereum is currently consolidating its losses and is trading below $1,580 and the 100-hourly SMA. A breakthrough above the $1,620 resistance might propel the price towards the $1,650 resistance, and further gains could open the doors for a move toward $1,820.
However, if Ethereum fails to clear the $1,600 resistance, it could experience another decline, with initial support near $1,570 and the next key support at $1,540. A break below $1,540 could lead to a more substantial drop towards the $1,500 level, plunging Ethereum further into the bearish zone.
Conclusion
Ethereum is currently in the red, struggling below the $1,600 level. The established bearish trend line poses a significant hurdle, and unless Ethereum manages to clear the $1,600 to $1,620 resistance levels, further declines seem likely, risking a drop to the $1,500 level. However, if it breaks above the resistance, a recovery towards $1,650 or higher might be on the cards. Traders should watch the market dynamics closely and trade cautiously in these volatile conditions.
