Ethereum Drops 7% After Failing To Surpass $1,700 Resistance

Ethereum's price has recently experienced a decline, falling from the $1,690 zone. The cryptocurrency is currently consolidating and may continue to drop below the $1,580 support level. This downturn follows Ethereum's failure to surpass the $1,700 and $1,720 resistance levels, leading to a break below a bullish trend line with support at $1,625 on the hourly chart.

Ethereum had previously formed a base above $1,550 and initiated a fresh increase, similar to Bitcoin. The price surged above the $1,600 and $1,620 resistance levels, reaching a high of $1,690 before correcting gains. The price moved below the $1,640 support zone and broke below the bullish trend line.

Currently, Ethereum is trading below $1,625 and the 100-hourly Simple Moving Average. On the upside, the price faces hurdles near the $1,620 level, with key resistance near $1,640 and $1,650. A clear move above $1,650 could send the price toward the $1,690 resistance, and potentially higher to $1,750 or even $1,800 in the near term.

However, if Ethereum fails to clear the $1,640 resistance, it could start another decline. Initial support on the downside is near the $1,580 level, with major support at $1,555. A clear move below $1,555 could push the price toward $1,525, and potentially lower to $1,450 or $1,420 in the near term.

Technical indicators suggest that the MACD for ETH/USD is gaining momentum in the bearish zone, while the RSI is below the 50 zone. Major support and resistance levels are at $1,580 and $1,640, respectively.

Analysts have differing opinions on whether this price dip presents a buying opportunity or a cause for concern. Some argue that the current price levels present an attractive entry point for long-term investors, while others caution that further declines could be on the horizon. According to the analyst's forecast, Ethereum's price could potentially rebound if it clears key resistance levels, but a failure to do so could lead to further losses.