Ethereum price started a fresh decline below the $1,650 zone. ETH is now consolidating and might decline further below the $1,550 support zone.

• Ethereum started a fresh decline below the $1,650 and $1,620 levels.
• The price is trading below $1,600 and the 100-hourly Simple Moving Average.
• There is a new connecting bearish trend line forming with resistance at $1,600 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it clears the $1,655 resistance zone.

Ethereum Price Faces Resistance

Ethereum price struggled to continue higher above $1,700 and started a fresh decline, like Bitcoin. ETH declined below the $1,620 and $1,600 support levels. It even spiked below $1,550.

A low was formed at $1,538 and the price is now correcting some losses. There was a move above the $1,565 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $1,690 swing high to the $1,538 low.

Ethereum price is now trading below $1,600 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $1,600 level. There is also a new connecting bearish trend line forming with resistance at $1,600 on the hourly chart of ETH/USD.

The next key resistance is near the $1,615 level or the 50% Fib retracement level of the downward move from the $1,690 swing high to the $1,538 low. The first major resistance is near the $1,650 level. A clear move above the $1,650 resistance might send the price toward the $1,690 resistance.

An upside break above the $1,690 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $1,750 resistance zone or even $1,800 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $1,600 resistance, it could start another decline. Initial support on the downside is near the $1,560 level. The first major support sits near the $1,535 zone.

A clear move below the $1,535 support might push the price toward the $1,500 support. Any more losses might send the price toward the $1,420 support level in the near term. The next key support sits at $1,400.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $1,535

Major Resistance Level – $1,650

Federal Reserve Chair Jerome Powell signaled on Tuesday that crypto banking regulations will be partially relaxed. He also made it seemingly clear that a near-term interest rate cut remains unlikely. 

Speaking at the Economic Club of Chicago, Powell addressed mounting uncertainty stemming from trade policy and reinforced the central bank’s cautious stance.

Fed’s Powell Maitains a Hawkish Outlook

Powell’s remarks come as market expectations for a May rate cut have collapsed, with CME FedWatch data pricing in just a 16% chance. US equities dipped modestly following the speech. The equity market currently reflects investor disappointment over the lack of dovish signals.

“We should not rush to lower interest rates,” Powell said. “We have every reason to wait for more clarity before considering any changes to Fed policy.”

The crypto market, however, remained relatively steady. Rate cut optimism had already been priced out after last week’s hawkish FOMC minutes and cooler-than-expected CPI print.

Powell also offered direct comments on digital assets.

“Cryptocurrency is becoming more popular. A legal framework for stablecoins is a good idea.”

He added that the Federal Reserve supports relaxing certain banking regulations on crypto. The Feds agree that the sector is maturing and requires more defined oversight rather than constraint.

The dual message—no imminent policy easing but a positive outlook for crypto regulation—was met with a muted response across digital asset markets. 

Bitcoin hovered near $84,500, showing resilience despite risk-off sentiment in equities. Powell acknowledged that economic growth had likely slowed at the start of 2025 and warned that Trump’s tariffs are a “key source of uncertainty.” 

He also noted the Fed is not close to ending quantitative tightening and may need to make difficult policy choices if inflation resurges.

While the Fed reaffirmed its readiness to provide dollar liquidity to global central banks if needed, Powell dismissed the idea of a Fed “put.” He said the central bank’s independence is “a matter of law.”

For crypto markets, the regulatory tone was a silver lining in an otherwise hawkish macro environment.