Ethereum Struggles to Regain Momentum; Maintains $1600

• Ethereum’s recent decline below key support levels at $1,600 and $1,580 signals increased selling pressure.
• Ethereum price soared over 1.26% in the last 24 hours.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, continues to grapple with bearish pressure as it strives to regain lost ground. On September 21, 2023, ETH initiated a fresh downward trend, sliding below key support levels and reaching a weekly low beneath $1,580. While the digital asset has since attempted a short-term recovery, the path to redemption remains fraught with challenges.

ETH experienced a notable dip, plunging as low as $1,565 before showing signs of a modest rebound. This upward correction managed to lift the price above the $1,590 mark, but the bears have proven resilient around the $1,600 resistance threshold. Adding to the pressure, Ethereum’s 200-day Moving Average (MA) currently stands above its 50-day MA, indicating a bearish trend sentiment.

Is Ethereum (ETH) Set to Enter a Bullish Zone?

The $1,600 level represents a critical juncture for Ethereum. A successful breakthrough could pave the way for a push towards $1,620, reigniting optimism among bulls. If they manage to conquer this hurdle, the path towards $1,650 and even $1,700 may open up, potentially triggering a bullish rally.

However, the Ethereum price remains uncertain, with the $1,600 resistance proving to be a formidable obstacle. Failure to breach this level may trigger another descent for ETH. Initial support is anticipated at the $1,580 level, but a breach of this could see Ethereum testing the $1,565 support, followed by a critical test at $1,540. A breakdown beneath $1,540 could usher in a more pronounced bearish phase, casting doubts on Ethereum’s short-term prospects.

At the time of writing, ETH traded in the $1,595 range, marking a 1.26% price increase over the past 24 hours.