Ethereum Nears $1,650 Resistance. Time to Long or Short?

• Ethereum’s price struggles to recover from $1,650 and break the $1,670 resistance.
• ETH current price stands at $1,620, a 1.5% decrease in the last 24 hours and 3% over the week.

In the midst of volatile investor sentiment, Ethereum’s technical landscape presents a series of hurdles, including potential trend reversals and critical resistance-support tests. The cryptocurrency recently made an effort to recover from the $1,690 zone, managing to surpass the $1,720 resistance level. However, much like Bitcoin, its upward momentum faced limitations.

Ethereum (ETH) Experiences Sharp Decline

Ethereum encountered difficulty gaining momentum beyond the $1,670 resistance level, resulting in a peak around $1,648, followed by a subsequent downturn. The price dropped below the $1,620 support level, briefly flirting with the $1,600 mark earlier. Ultimately, it found a bottom at $1,610 and is currently consolidating these losses.

Currently, Ethereum finds itself trading below $1,650 and the 100-hourly Simple Moving Average. Moreover, a significant bearish trend line is taking shape with resistance at around $1,630 on the hourly chart of ETH/USD.

If the prevailing trend persists, there is a possibility of Ethereum’s price declining further to $1,608 or even plunging to $1,521. To instigate a sustainable recovery, Ethereum must establish a foothold above the $1,650 and $1,750 levels. If a bullish trend materializes, ETH might scale up to $1,975, with further gains potentially opening the doors for a move toward $2,095. On the other hand, Ethereum’s current condition is marked by an oversold status with a reading of 49.43, indicating a possible rebound or correction. 

At the time of writing, Ethereum is trading at $1,620, marking a 1.5% decline in the past 24 hours and a 3% decrease over the week. Nevertheless, there is a silver lining, as the daily trading volume of Ethereum has witnessed a modest uptick of 14% in the last 24 hours, reaching $5.1 billion.

However, the Ethereum blockchain has recently witnessed a notable decrease in transaction fees. According to on-chain analytics firm Santiment, gas fees have dropped to levels not seen in nearly a year. The average cost of settling transactions over the past week hovering at just $1.13. This marks a significant reduction from the peak fees witnessed earlier in May.