Ethereum started the second half of the year on a bearish note with no sign of recovery at the moment. However, the price has stalled below a key level for days. A surge above that level could activate a fresh increase.
This month, Ethereum continued to show signs of weakness after rejecting the $2,029 level in July. The price has dropped by almost 25% ever since as the trend now looks bearish from a short-term perspective.
While undergoing a correctional phase, the price is currently trading around the lower boundary of the descending channel, which has been forming since April. This calmness came after testing the $1,670 level during a small recovery in the mid-month.
However, there’s still hope for an increase from a mid-term perspective. If ETH repeats June’s bounce pattern from the lower boundary of the channel – leading to a surge above the immediate resistance line – we can expect a quick rally to $1,900 to test the channel’s upper boundary.
A cross above the channel would validate a continuation of the existing mid-term bullish before breaking higher.
In overall, ETH has seen roughly a 33% loss since it tapped the $2,141 level (the current yearly high) in April. A breakdown from the monthly low could cause more pain for the bulls as they continue to suffer.
ETH’s Key Level To Watch
Source: TradingView
While ETH remains calm, the closest support level to consider for a breakdown is $1,560 (marked as last week’s low), followed by the psychological $1,500 level and $1,461. The March low of $1,368 level would be the next selling target if those support cracks.
The potential resistance for an increase lies at $1,670 (marked as last week’s high). Higher resistance levels to keep in mind are $1,746 and $1,803.
Key Resistance Levels: $1,670, $1,746, $1,803
Key Support Levels: $1,560, $1,461, $1,368
- Spot Price: $1,588
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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