Ethereum (ETH) Dips Below $1600 as Bulls Fail to Sustain Momentum Above Resistance

Ethereum (ETH) is once again under pressure after failing to sustain momentum above the $1700 resistance. The second-largest cryptocurrency by market cap has

Recently, Ethereum (ETH) price has come under renewed pressure as it failed to capitalize on gains above the $1,700 resistance. Slipping into a short-term downtrend, key support levels will be critical for determining if a deeper correction is in the cards.

After being rejected at the $1,700-$1,720 zone, ETH started a fresh decline, breaking below the crucial $1,620 level.

At the time of writing, Ethereum is trading below its 100-hourly Simple Moving Average (SMA), indicating that bears have taken control in the short-term.

ETH Still Vulnerable After Breaking Bullish Trend Line

Hourly chart of ETH/USD Credit: Benzinga

As seen on the chart by Kraken, a new connecting bullish trend line was broken with support seen at around $1,625. This breakdown adds to the immediate bias for more weakness.

The breakdown has created an opportunity for more weakness towards the $1,580 support. A strong move below this zone could pour more fuel on the fire and have buyers become more exhausted.

But, if the price manages to bounce off the $1,580 zone and close an hourly candle above the $1,640 resistance, then it could negate the short-term bearish bias.

A strong move above this resistance could have traders preparing for another push towards the $1,700 barrier.

$1,640 Short-Term Resistance Vs. $1,580 Support

Short-term traders will be focusing on the $1,640 zone as an area of resistance. A break and sustained move above this level could shift the bias back into the hands of the bulls.

On the other hand, traders will be watching the $1,580 zone as an immediate line in the sand, and $1,640 acts as the pivot point for any potential recovery.

With major market trends still in focus and Bitcoin showing strength above $70,000, traders will be able to capitalize on any trends that develop throughout the day.

What Next For ETH Price?

Despite the recent decline, key levels to watch will be the $1,580 support and the $1,640 resistance.

If the bears manage to push the price below the $1,580 zone, then it could open the door for more weakness towards the $1,500 or even $1,480 zone in the short term.

However, if the bulls can defend this support and create an hourly candle close above the $1,640 resistance, then it could shift the bias back into the hands of the bulls.

This could have traders setting their sights on a potential recovery towards the $1,700 zone or the 100-hourly SMA, which is currently rendering at around $1,680.