Ethereum is About to Hit $1,650: Time to Go Long or Short?

• Ethereum’s price fell beneath the $1,620 support level, stabilizing at $1,610.
• Ethereum’s daily trading volume increased by 14% in the past 24 hours.
• Ethereum blockchain’s transaction fees have significantly reduced, says Santiment.

During fluctuating investor attitudes, Ethereum’s technical outlook is marked by challenges such as possible trend shifts and crucial resistance-support evaluations. The digital currency recently attempted to bounce back from the $1,690 area, successfully exceeding the $1,720 resistance mark. However, similar to Bitcoin, its upward trajectory encountered constraints.

Ethereum (ETH) Undergoes Steep Drop

Ethereum struggled to surpass the resistance level of $1,670, reaching a high of approximately $1,648 before experiencing a decline. The price fell beneath the $1,620 support level, momentarily nearing the $1,600 threshold. Eventually, it established a low at $1,610 and stabilized after these losses.

Ethereum is trading under $1,650 and beneath the 100-hourly Simple Moving Average. A notable downward trend line is forming with resistance approximately at $1,630 on the hourly ETH/USD chart.

Should the current trend continue, Ethereum’s price could drop to $1,608 or even plummet to $1,521. Ethereum must secure a position above the $1,650 and $1,750 mark for a lasting recovery. ETH could rise to $1,975 in a bullish trend, with additional gains paving the way towards $2,095. Conversely, Ethereum is currently in an oversold state with a reading of 49.43, suggesting a potential bounce back or adjustment.

As of when this was written, the trading price of Ethereum stands at $1,620, reflecting a 1.5% drop in the last 24 hours and a 3% fall over the past week. However, there is a positive aspect to note, as Ethereum’s daily trading volume has seen a slight increase of 14% in the past 24 hours, amounting to $5.1 billion.

Nonetheless, the Ethereum blockchain has recently experienced a significant reduction in transaction fees. As per the data from the on-chain analytics company, Santiment, the gas fees have fallen to levels that haven’t been observed in almost a year. The average transaction cost over the previous week was approximately $1.13. This represents a substantial decrease from the highest fees recorded earlier in May.