Ethereum (ETH) is showing signs of a potential recovery as it attempts to move higher from the $1,565 support level against the US Dollar. To establish a strong recovery, ETH must surpass key resistance levels, particularly $1,620.
Key points to consider:
- Ethereum is striving for a recovery wave above $1,580 and $1,590.
- It is currently trading above $1,590 and the 100-hourly Simple Moving Average.
- A significant bearish trend line was broken with resistance around $1,590 on the hourly chart.
- Ethereum faces resistance near $1,600 and the next major barrier at $1,620.
- A successful breach of $1,620 could lead to further gains, with potential targets at $1,650, $1,660, and even $1,720.
- On the flip side, if Ethereum fails to break above the $1,620 resistance, it might experience another decline. Initial support is around $1,580, followed by $1,565, and a more crucial support level at $1,540. A drop below $1,540 could trigger a sharp decline toward $1,440.
The hourly MACD for ETH/USD is showing a loss of momentum in the bearish zone, while the hourly RSI is above the 50 level.
In summary, Ethereum is attempting to recover from its recent lows, but it must overcome resistance levels to establish a strong uptrend. The $1,620 level is a critical hurdle, and if breached, ETH could aim for higher targets in the coming sessions. Conversely, failure to break above this level may lead to another downward move.