- Ethereum’s price faces crucial support near $1,490 to $1,500 for stability.
- Resistance levels around $1,575 to $1,600 pose obstacles for potential recovery.
- Oversold RSI suggests a potential bounce, but MACD signals continued bearish pressure.
Ethereum’s price action this week has drawn attention, especially after a sharp daily drop pulled it below key support levels. The decline sent ETH to around $1,549.90, with a 2.92% loss in just 24 hours. While the price showed signs of slight recovery during the session, it failed to regain earlier highs.
Consequently, the current trend suggests bearish momentum is building. However, certain technical signals hint that Ethereum may be nearing a decision point one that could lead to a sharp move in either direction.
Ethereum Hovers Above Crucial Support
The decline found temporary support around $1,490 to $1,500, a zone that previously halted Ethereum’s fall. This intraday support held firm despite the selling pressure. A deeper level near $1,475 also emerged, marked by lower wicks, though it has not been tested again. This level may serve as the next line of defense if current support fails. However, the price must stay above $1,490 to avoid further downside.
On the upside, Ethereum faces immediate resistance near the $1,575 to $1,580 range. The market failed to maintain this level earlier in the week. Moreover, stronger resistance exists between $1,595 and $1,600. This was the last high before the recent drop and is considered both a technical ceiling and psychological barrier.
Oversold RSI and MACD Divergence Suggest Mixed Signals
The Relative Strength Index (RSI) is nearing oversold conditions, now hovering around 31.31. Historically, when RSI approached this level in mid and late 2022, Ethereum experienced upward retracements. Hence, short-term traders are considering the possibility of a technical bounce. However, this setup alone is not enough to confirm a recovery.
Besides, the Moving Average Convergence Divergence (MACD) continues to paint a bearish picture. The widening gap between the MACD and its signal line reflects strong negative momentum. This pattern indicates that sellers are still in control, and any bounce may remain limited unless a reversal signal appears.
