Key Takeaways:
- Ether’s price is signaling a bearish breakdown below the $1,600 support.
- ETH/USD traded below a key rising channel with support at $1,615 daily.
- The price could accelerate lower toward the $1,380 support.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) shows bearish signs below $1,600. The bears could gain strength and aim a drop toward the $1,380 level.
Ethereum Price At Make-or-Break Levels
In the past few days, Ethereum’s price struggled to gain strength for a move toward $1,820. ETH failed to remain in a positive zone and started a fresh decline from $1,750, like Bitcoin.
There was a steady decline below the $1,700 and $1,650 levels. The bears pushed the price below the 76.4% Fib retracement level of the upward move from the $1,532 swing low to the $1,765 high.
Ethereum traded below a key rising channel with support at $1,615 on the daily chart. It trades below the $1,600 support and the 50-day simple moving average (blue).
The current price action suggests that the bulls might struggle to defend the main breakdown support at $1,530. If they fail, there could be a strong drop in ETH in the coming sessions. More importantly, the Israel-Hamas war impacts the crypto market and increases selling pressure.
Recently, Israeli Energy Minister Israel Katz released a statement saying there will be no electricity, fuel, or humanitarian aid in Gaza until Hamas releases all captives, as Israel continues to bombard Gaza.
A downside break in Ethereum below the $1,530 support could send the price toward the $1,480 support. The bears’ next key target may be $1,380 or the 1.618 Fib extension level of the upward move from the $1,532 swing low to the $1,765 high. Any more losses might call for a test of $1,320.
Another Recovery Attempting in ETH?
Conversely, Ethereum might attempt another increase from $1,530. Immediate resistance is near the $1,600 level. The first major resistance is near $1,620 and the 50-day simple moving average (blue).
The next key resistance is near $1,700 and a connecting bearish trend line on the same chart, above which the price might rise toward $1,750. Any more gains could start a steady uptrend toward $2,000.
Overall, Ether’s price is approaching crucial support at $1,530. If the bulls fail to protect $1,530, ETH could dive toward $1,380. Conversely, it might recover and revisit $1,700.
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