Ethereum's Bullish Momentum Falters Near Resistance
The tether codesecond-largest cryptocurrency by market capitalization recently encountered selling pressure after testing the $1,650 resistance level. Following this rejection, ETH entered a corrective phase that saw prices dip below the psychologically important $1,600 threshold.
- ETH faced rejection at $1,655 before initiating downward correction
- Price broke below short-term triangle pattern with $1,595 support
- Current consolidation occurring near 23.6% Fibonacci retracement level
- 100-hour SMA currently acting as dynamic resistance
Critical Levels to Watch in ETH/USD Pair
Market participants should monitor several key technical levels that could determine Ethereum's near-term trajectory. The immediate resistance cluster appears between $1,600-$1,620, coinciding with the 50% retracement level of the recent pullback.
Should buyers regain control, a decisive break above $1,620 could open the path toward retesting the $1,650 swing high. Beyond this level, the $1,720 and $1,800 zones emerge as potential upside targets for continuation moves.
Potential Downside Scenarios
Failure to reclaim the $1,620 resistance might trigger another wave of selling pressure. Initial support rests at $1,565, followed by more substantial buying interest near $1,550. A breakdown below this zone could accelerate declines toward $1,500 and potentially $1,450.
Traders should note that the hourly MACD shows increasing bearish momentum, while the RSI remains below the neutral 50 level, suggesting near-term weakness. These indicators warrant caution until clearer signs of reversal emerge.
Market Structure Remains Intact
Despite the recent pullback, Ethereum maintains its broader bullish structure above the $1,520 support level. The current consolidation phase represents normal market behavior following the strong rally from lower levels.
Market participants should watch for either a confirmed breakout above $1,620 or breakdown below $1,550 to determine the next significant directional move. Volume analysis during these tests will provide valuable confirmation signals.