Ethereum Price Rejected Again: Is Another Bearish Move Coming Up?

Posted Friday, January 27, 2023 by
Arslan Butt • 1 min read

Once again, Ethereum’s price versus the US dollar struggled to break beyond the $1,640 barrier. The Ethereum price is correcting down and is still vulnerable to breaking below the $1,550 level of support. The price of Ethereum began a solid upswing once it broke above the $1,600 resistance mark. Ethereum made another effort to break above the $1,640 resistance zone, but the bears were able to prevent any further gains.

The market made a new high close to $1,639 and has since begun correcting lower. Prices dropped below $1,600 and the 100-hourly simple moving average. The current drop is below the 50% Fibonacci retracement level of the most recent leg from the $1,518 swing low to the $1,639 high.

However, buying pressure was seen around the $1,550 level. Price action kept it above the 61.8% Fib retracement line of the most recent leg from the $1,518 swing low to the $1,639 high.

Ether’s price has dropped below $1,600 and the 100 hourly SMA. Near the $1,590 price point, there’s some stiff competition. On the hourly chart, ETH /USD is building a major contracting triangle with resistance near $1,590.

Near the $1,640 level is where you’ll find the next chunk of resistance. A significant upswing might get underway if prices are able to break out over the $1,640 barrier level. For the reasons given, it is possible that the price will increase until it reaches the $1,720 resistance level.

Ethereum’s price may continue to fall if it is unable to break down the $1,600 barrier level. The bottom trend line of the triangle, or around $1,550, provides initial support below.

The $1,520 area is the next key support level. The $1,450 support level might be reached if the price drops below $1,520. It’s possible that if losses continue, the $1,365 area may be tested again.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments