Ethereum (ETH) Breaking This Single Level Could Spark a Major Rally

Ethereum’s ETH moved into a bearish zone below the $1,700 level. It is correcting losses, but a clear move above the $1,600 resistance is needed.

Ethereum (ETH) Price Eyes Upside Break

This past week, ethereum saw a bearish wave from the $1,700 resistance zone against the US Dollar. The ETH/USD pair declined steadily below the $1,600 support and the 50 simple moving average (4-hours, blue), similar to bitcoin.

The bears even pushed the price below the $1,510 support zone. Finally, it traded as low as $1,422.80 and recently started an upside correction.

Etheruem’s 4-hours price chart | Source: ETHUSD on TradingView.com

There was a recovery wave above the $1,500 and $1,510 resistance levels. Ether price climbed above the 50% Fib retracement level of the last key decline from the $1,722 swing high to $1,422 low. The bulls even pushed the price above $1,580 resistance and the 50 simple moving average (4-hours, blue).

However, the bears took a stand above the $1,600 resistance zone. They defended gains above the 61.8% Fib retracement level of the last key decline from the $1,722 swing high to $1,422 low.

The price is now trading well below $1,600 and the 50 simple moving average (4-hours, blue). There is also a major bearish trend line forming with resistance at $1,570 on the 4-hours chart. An immediate support on the downside sits near the $1,510 level.

The next major support is near $1,480. The main support is now forming near the $1,420 level. A close below the $1,420 level might spark a sharp decline. In the stated case, there is a risk of a move towards the $1,300 zone. Any more losses might send ether price towards the $1,250 level.

An immediate resistance is near the $1,570 level. The next major resistance is near the $1,600 level, above which ether price might surge to $1,720. Any more gains might open the doors for a move towards the $1,840 resistance.

Overall, ether price is struggling to clear the $1,570 and $1,600 resistance levels. Therefore, it could decline sharply and revisit $1,420. Conversely, there might be a fresh rally if there is a close above the $1,600 level.