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
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.