Ethereum Drops 4% Below $1,620, Faces Key Support Levels

Ethereum's price has recently fallen below $1,620, entering a new consolidation phase after facing resistance near the $1,700 level. The value of ETH stabilized at resistance within the $1,580 support area, with market participants closely analyzing bearish trends and anticipating increased trading fluctuations according to short-term market signals. This price movement has sparked differing views among investors, with some seeing it as a temporary downtrend and others viewing it as a new upward momentum. The dip has raised concerns, as some investors see it as an opportunity to acquire large amounts of the second-largest cryptocurrency, while others view it as a sign of serious market problems.

Ethereum's price attempted a rally above $1,650 earlier this week, briefly touching the $1,690 level before bulls lost steam. A strong rejection at $1,700 led to a break below $1,640, followed by the loss of a critical support trendline at $1,625. The failure to maintain this upward channel triggered new selling interest, pushing ETH below the 100-hour Simple Moving Average (SMA). ETH maintains a price position slightly above $1,580, and short-term technical metrics predict that a downward movement will occur. The hourly MACD indicator shows a deep negative reading while the RSI measures below 50, indicating diminishing market strength. ETH will likely drop back to the $1,555 support level before possibly falling to $1,525 or even reaching $1,450.

Ethereum’s recent slide strongly emphasizes the $1,580 and $1,555 levels as near-term support. A drop below these zones may lead to a deeper correction, with targets at $1,525 and $1,450, aligning with the 61.8% Fibonacci retracement level from the $1,472 swing low. On the upside, ETH faces a stiff wall of resistance starting at $1,620 and extending to $1,640. A break over $1,650 would be essential for a comeback if bulls pick up steam again. ETH may then retest $1,690 and rise to $1,750 or perhaps $1,800, but only if there is a favorable change in the general mindset.

Cryptocurrency analysts hold varied perspectives on Ethereum's future. Some predict that short-term weakness may persist, while others think the current decline offers a long-term buying opportunity, especially if macroeconomic data and Bitcoin price movements continue to be positive. Market participants expect upcoming Ethereum ETF regulatory decisions and network advancement news to impact ETH’s intermediate trend strongly.

Looking ahead, Ethereum’s trajectory will likely be shaped by its performance around the $1,580 and $1,640 zones. A decisive move in either direction could dictate momentum for the rest of the month. If support levels hold, buyers may return with confidence, setting the stage for a potential push toward $1,700+. If not, we could see ETH underperform in the broader market, especially as Bitcoin continues to dominate the narrative.

The recent Ethereum price fall has drawn attention, though it has not yet signaled any major market concern. With solid support at $1,555 and visible resistance near $1,640, ETH remains in a wait-and-watch zone. Traders should stay alert to technical signals and broader crypto sentiment. Whether considering a dip-buy or bracing for more downside, ETH is at a critical juncture, and its next move could offer vital clues for Q2’s market direction.