Ethereum (ETH) Attempts a Comeback as Key Resistance Nears

Ethereum is showing signs of life again after a choppy few weeks. Following a strong bounce from the $1550 zone, ETH is now hovering above the $1600 level

Ethereum is showing signs of life again after a choppy few weeks. The world's second-largest cryptocurrency is now attempting to rise above the critical $1,650 resistance, which could trigger a short-term rally.

Ethereum attempts comeback as key resistance nears

Earlier this week, Ethereum fell to about $1,550, but the coin has since made a strong recovery. Driven by new bullish momentum and renewed hope in the altcoin market, saw the second-largest cryptocurrency by market capitalization easily soar beyond $1,580 and $1,600.

The hourly ETH/USD chart shows that the coin broke above a negative trend line at around $1,590, clearing the path for additional highs.

ETH is currently maintaining gains above the 23.6% Fib retracement level of the most recent $1,566-$1,644 move and is trading comfortably above its 100-hour Simple Moving Average. While these technical indicators suggest strength, a significant hurdle remains at $1,650.

This resistance level, which has limited ETH's advances in recent sessions, is still crucial for determining the short-term trajectory. If ETH price can convincingly push past $1,650, the next resistance zones are lined up at $1,680 and $1,720. A break above those could open the floodgates toward $1,800 and even $1,840 in the coming sessions.

However, the flip side remains in play. If the ETH price fails to clear $1,650, it could retrace lower. Immediate support lies near $1,620, followed by $1,605 - coinciding with the latest rally's 50% Fib retracement level. A dip below these zones might see Ethereum retest $1,580 or even $1,550 again.

With the hourly MACD gaining strength in the bullish zone and the RSI holding above 50, ETH looks well-positioned for another push. Still, traders remain cautious, closely monitoring the broader crypto market for cues.

What is next for ETH? Key levels to watch

Looking ahead, what is next for ETH mostly rests on its capacity to hold back against the $1,650 resistance and continue to rise. The ETH price may aim for the $1,800 range following a good breakout, particularly if investor confidence and network activity improve. On the other hand, Ethereum might be subject to fresh selling pressure and bearish sentiment if it were to lose the $1,600 support.

As the crypto market waits for a clear move, time is of the essence, but for now, the bulls still have a chance.