Ethereum (ETH) recently experienced an 18% rally but now trades below $1,620. The critical resistance levels are at $1,640, $1,665, and $1,680, while major support is found at $1,575, $1,280-$1,160, and $890-$715. Market uncertainty from US-China trade tensions and upcoming Federal Reserve events is adding complexity to its price movements.
Ethereum (ETH) has recently increased by 18% from its prior weekly lows, sparking speculation about its future trajectory. Currently, ETH is trading below $1,620 and the 100-hourly Simple Moving Average, highlighting key technical resistance levels at $1,640, $1,665, and $1,680, alongside major support levels at $1,575, $1,280-$1,160, and $890-$715.
After touching a high of $1,668, ETH has encountered a price correction and is now positioned below $1,600. The cryptocurrency revisited the 2018 all-time high at $1,385 during its recent downward trend, prompting speculation about potential bottom formations, although uncertainty remains palpable due to various external factors.
On the weekly chart, ETH is facing significant resistance near the $1,630 area, which has the highest trading volume since February 2021. To confirm a bullish reversal, price action must successfully breach this resistance. A bearish trend line has formed on the hourly chart, indicating a resistance point at $1,640, while $1,665 represents a critical barrier. If ETH surpasses these levels and especially the $1,680 mark, it may aim for higher price ranges around $1,720 or $1,800; however, if it fails, renewed selling pressure is anticipated.
ETH established a floor above $1,500 prior to its latest upswing, breaking through the $1,550 and $1,580 resistance levels. Should the cryptocurrency face downward movements, major support begins around the $1,575 mark, corresponding to the 50% Fibonacci retracement of the recent upward trend. Further declines could push ETH to $1,550 with additional support appearing at $1,520, while the $1,480 area remains vital.
For long-term investors, attention should be given to the demand zone between $1,280 and $1,160, noted for a significant 40% price increase in late 2022. The overarching support zone from $890 to $715 indicates a previous buy-side imbalance that could prompt a rally.
Technical indicators present a mixed picture for ETH; the hourly MACD shows diminished bullish momentum, while the Relative Strength Index (RSI) hovers above 50, suggesting potential strength. Importantly, the weekly RSI has not yet reached the oversold threshold typically seen before major rallies, implying that further declines may be possible.
Increasing market volatility is also being influenced by ongoing US-China trade tensions. Market participants should prepare for significant upcoming events: speeches from Federal Reserve Chair Powell and March’s inflation data announcement, both of which could sway prices.
Ethereum’s trajectory is currently within a consolidation phase as traders await decisive signals regarding key support and resistance levels amid a complex market landscape.
