Ethereum (ETH) Price Prediction: Bears Are in Control as ETH Slumps Below Key Support Levels

Ethereum (ETH) is under fresh bearish pressure as the leading altcoin struggles to maintain its footing above key support zones.

Ethereum (ETH) is encountering fresh bearish pressure as the premier altcoin endeavors to maintain its standing above pivotal support zones. Following a steep decline below the $1,650 zone, the second-largest cryptocurrency is exhibiting signs of further weakness, raising inquiries about its short-term trajectory.

Crucial Support Levels Breached by Ethereum

Recent price developments have seen Ethereum slip below both the $1,650 and $1,620 levels, indicating a bearish technical shift.

At present, ETH is trading below the $1,600 zone and also below the 100-hourly Simple Moving Average, a technical indicator closely monitored by traders for gauging market momentum.

A new bearish trend line is emerging, with resistance forming at the $1,600 level on the hourly ETH/USD chart (data provided by Kraken).

This resistance is acting as a ceiling, impeding the price from staging a substantial recovery—at least in the immediate term.

As traders delve deeper, they are focusing on the $1,550 support zone as a critical juncture. A decisive break below this area could escalate losses, potentially propelling Ethereum toward the next major support at $1,500. However, if buyers manage to defend this level effectively, it might serve as a launchpoint for a short-term rebound.

To chart a course for recovery, traders would need to see a break above the $1,600 zone, and more significantly, a move above the $1,655 zone.

Breaking above this level could render the current bearish trend invalid and pave the way for a potential rally toward $1,700 and beyond.

However, with volatility escalating and the broader cryptocurrency market displaying mixed signals, the near-term direction of Ethereum remains uncertain.

Traders should closely observe for a confirmed move either below $1,550 for a breakdown or above $1,655 for a breakout as the technical crossroads unfold.