Technical Analysis Shows Key Resistance at $1,640 Level

TLDR

Ethereum (ETH) recently rallied 18% from previous weekly lows
ETH is trading below $1,620 and the 100-hourly Simple Moving Average
Key resistance levels include $1,640, $1,665, and $1,680
Major support levels to watch: $1,575, $1,280-$1,160, and $890-$715
Market uncertainty increased by US-China trade tensions and upcoming Fed events

Ethereum (ETH) has shown signs of recovery with an 18% rally from its previous weekly low, sparking debate about whether the second-largest cryptocurrency has found its bottom or could face more downward pressure. Trading data shows ETH consolidating near crucial price levels while traders watch key technical indicators for direction.

The recent price movement has brought ETH to test important resistance levels. After reaching a high of $1,668, the price underwent a correction and is now trading below $1,600 and the 100-hourly Simple Moving Average.

Ethereum touched the 2018 all-time high of $1,385 during its recent decline, leading some market participants to speculate about a potential bottom formation. However, several factors suggest the cryptocurrency might not be out of the woods yet.

Key Resistance Levels Could Cap Gains

On the weekly chart, Ethereum is revisiting the $1,630 area, which represents the highest volume traded level since February 2021. This level serves as a major hurdle that bulls need to overcome to confirm a reversal.

Ethereum has formed a new bearish trend line with resistance at $1,640 on the hourly chart. Beyond this, the $1,665 level presents the next major barrier.

If buyers can push the price above these resistance points, particularly the $1,680 level, Ethereum could target higher zones near $1,720 or even $1,800 in the near term. However, failure to break through these resistance levels could lead to renewed selling pressure.

The cryptocurrency formed a base above $1,500 before starting its recent upward move. The price gained momentum as it climbed above the $1,550 and $1,580 resistance levels, eventually reaching $1,668 before starting a downside correction.

Support Zones That Could Determine ETH’s Path

Several key support levels may come into play if Ethereum faces more selling pressure. The first major support sits near the $1,575 zone, corresponding to the 50% Fibonacci retracement level of the recent upward move.

A break below this level could push the price toward $1,550, with further support at $1,520. The $1,480 area represents another important support level that could prevent deeper declines.

For longer-term investors, the intermediate demand zone between $1,280 and $1,160 bears watching. This area formed in December 2022 and previously led to a 40% price increase in the following weeks.

The weekly chart also shows an absolute key support zone extending from $890 to $715, representing a weekly buy-side imbalance that previously triggered a strong rally.

Technical Indicators and External Factors

Technical analysis suggests mixed signals for Ethereum. The hourly MACD is losing momentum in the bullish zone, while the hourly RSI remains above the 50 level, indicating some underlying strength.

On the weekly chart, the Relative Strength Index (RSI) has not yet reached oversold territory. Historically, major rallies for Ethereum have often begun after the RSI tagged oversold levels, suggesting the potential for further declines.

External factors are adding complexity to the market outlook. Trade tensions between the US and China have introduced more volatility to both stock and crypto markets.

The week ahead features two major events that could impact prices: Federal Reserve Chair Powell’s speech and the March inflation announcement. Both could trigger additional market movements depending on their outcomes.

Ethereum continues to navigate a challenging market environment. While recent price gains have provided some optimism, traders remain cautious about potential downside risks given the technical picture and broader economic concerns.

For now, Ethereum’s price action remains in a consolidation phase as market participants await clearer signals from key support and resistance levels.