- Ethereum is currently consolidating above key support at $1,550 after dipping below $1,600, with bullish potential hinging on a breakout above the $1,620 resistance level.
- The forecast suggests a potential breakout if the $1,620 resistance is cleared.
Ethereum (ETH) is showing resilience despite facing selling pressure around $1,650. After a brief push above this level, ETH couldn’t hold its gains and dipped below $1,600. However, technical patterns suggest an optimistic outlook. The second-largest cryptocurrency is consolidating above key support, indicating a potential rise if it overcomes resistance.
Key Levels to Watch
Ethereum is consolidating after a recent low of $1,564, following a failed attempt to break above $1,650. The immediate focus is on holding support above $1,550, a critical level in recent sessions. The primary challenge is overcoming the $1,620 resistance before another move towards $1,650 can be attempted.
Technical indicators present a mixed view. The Relative Strength Index (RSI) is below the neutral 50, suggesting weaker buying pressure, while the hourly Moving Average Convergence Divergence (MACD) remains bearish. However, ETH hasn’t broken its established bullish structure. A successful retest and hold above $1,550 could trigger renewed bullish activity.
Ethereum’s recent pullback from $1,655 is seen as a short-term correction. The 50% Fibonacci retracement of the recent decline from $1,655 to $1,564 sits near $1,610, a crucial mid-range resistance. If this level is reclaimed and $1,620 is surpassed, the next targets are $1,650 and potentially $1,720.
Trading volume has been stable, indicating a market in a wait-and-see mode without panic selling or excessive buying. Ethereum’s fundamentals remain strong, supported by the upcoming Dencun upgrade and renewed investor interest after Bitcoin’s halving. The immediate goal is reclaiming the $1,620 level.
If buyers take control and push higher, a retest of $1,720 is possible, with a potential move to $1,800 if broader market conditions are favourable. Conversely, if sellers break $1,550, (ETH) could fall further to $1,500 or even $1,450, putting pressure on medium-term bullish sentiment.
Vitalik Buterin’s Proposal and Bearish Analyst Sentiments.
Ethereum co-founder Vitalik Buterin has proposed a significant upgrade, suggesting a shift from the Ethereum Virtual Machine (EVM) to the RISC-V instruction set architecture. In an April 20 proposal, Buterin highlighted key areas Ethereum needs to address for scalability and competitiveness, including improving data availability sampling, ensuring healthy block production competition, and optimising zero-knowledge proof generation.
Buterin believes integrating RISC-V could significantly enhance zero-knowledge functionalities, which are increasingly important for Ethereum’s future.
Some analysts, like Peter L. Brandt, have presented more pessimistic forecasts, suggesting Ethereum could drop to $800, similar to its 2022 low. The weekly candlestick chart of Ethereum (ETH/USD) shows a significant breakdown below a long-standing horizontal support level around $1,590–$1,600, indicating bearish momentum. The chart suggests that ETH could be heading toward a lower price zone between $500 and $700, highlighted by the red dot and horizontal black lines.
This potential drop is further supported by ETH trading below its short-term moving average and weighted moving average, both signalling a clear downtrend. Overall, the chart reflects a technically bearish outlook for Ethereum in the medium to long term. Today, Ethereum is trading at $1,624, down 1% in the last 24 hours, with a trading volume of $ 16.6 B.