Ethereum, the second-largest cryptocurrency by market capitalization, is facing a downward trend as its price approaches the $1,500 support level against the US dollar. Although there may be a potential for a correction higher, it is anticipated that any upside movement will be limited above the $1,565 mark. Ethereum has been struggling to initiate a recovery above $1,550 and is currently trading below the $1,565 level as well as the 100-hourly Simple Moving Average. The hourly chart for ETH/USD on Kraken shows the formation of two bearish trend lines with resistance near $1,555 and $1,570. In light of these factors, it is expected that the bears will remain active near the $1,565 level.
The recent decline in the Ethereum price has caused it to trade at a new weekly low of $1,521. Despite minor increases in its value, the price has yet to overcome the bearish trend lines and resistance levels near $1,555 and $1,570. Furthermore, Ethereum remains below the 100-hourly Simple Moving Average. In order for a potential recovery to occur, the price must surpass the $1,565 level and successfully breach the resistance offered by the trend lines. The $1,570 resistance is of particular importance, as it aligns with the 61.8% Fibonacci retracement level. A clear move above this level could possibly lead to a rise in the Ethereum price, pushing it towards the key resistance at $1,600. However, if the resistance is not cleared, Ethereum may experience further losses, potentially dropping towards the $1,440 and $1,420 support levels.
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