Silver has returned to a price area that has repeatedly controlled its direction. The metal recovered from its June decline and climbed back above $64, but buyers have struggled to push it through the resistance between $63 and $66.
That struggle has created an interesting silver price setup. Analyst Sahil Pahwa believes a cup and handle pattern may be developing. Oren Elbaz also views the current resistance as a temporary hurdle, although both analysts agree that silver must prove itself around this level.
The next breakout attempt could provide an important answer. Silver may either clear the barrier and continue higher or face another rejection that sends the price toward nearby support.
What you'll learn 👉
Silver Price Must Break and Hold the $63 to $66 Resistance Zone
Sahil Pahwa has repeatedly identified the area between $63 and $66 as the main barrier standing in the way of a stronger silver price rally. A temporary move above this zone may not provide enough confirmation. Silver needs to break through the area and remain above it.
A look at Pahwa’s silver chart shows the price trading close to $64. The metal has recovered strongly since reaching support near $55 during June, but the latest rally has slowed after entering the resistance zone.
Several levels now deserve close attention:
- $63 to $66: This remains the main resistance zone that silver must overcome.
- $67: A move above this level could strengthen the breakout case.
- $75: This area marks the next larger resistance on Pahwa’s chart.
- $82: This level could become relevant if silver extends its recovery.
- $61: This provides nearby support if the current breakout attempt fails.
- $55: This area marks the major June bottom and stronger support.
Silver previously traded above $66 before the June decline pushed it below the same level. Former support has now become resistance because some sellers have returned near their previous entry prices.
Silver’s Cup and Handle Pattern Could Support Another Breakout Attempt
Pahwa believes silver could be developing a cup and handle pattern beneath the resistance zone. The rounded recovery from the June low forms the potential cup. Recent consolidation near $64 could eventually create the handle.
Cup and handle patterns usually develop when an asset recovers from a decline and pauses beneath resistance. Buyers initially carry the price back toward its former high, but some holders use the recovery to exit their positions.
That selling pressure creates a smaller pullback or sideways period known as the handle. A breakout can follow once the available supply near resistance begins to decline.
The possible pattern currently depends on 3 conditions:
- Silver must remain above nearby support around $61.
- Buyers must push the silver price through $66.
- The price must hold above the breakout zone afterward.
The pattern would remain incomplete until silver price breaks above the neckline. That neckline appears close to the upper part of the $63 to $66 resistance zone.
Pahwa’s chart also places the daily relative strength index near 59. The indicator remains below overbought territory, which leaves room for another upward attempt if demand remains strong.
Oren Elbaz Believes Previous Buyers Are Selling Near Their Entry Prices
Oren Elbaz offered another explanation for the current silver price weakness. Silver traded around $66 to $67 earlier this year, and that region was treated as a dependable floor.
Some buyers entered whenever the metal returned to that area. The June breakdown then left those positions at a loss as silver dropped toward $55.
Why is #silver backtracking here?
— Oren Elbaz (@thesilverhermit) August 14, 2026
Earlier this year, $66-67 an ounce was considered as the floor, and some people bought it whenever it approached this price. When this floor broke down in June, they became disappointed with silver, and frightened that it may go much lower. Now… pic.twitter.com/nxKJKGz9EG
Elbaz believes some of those holders may now be selling after silver returned to their original entry prices. Their goal may be to recover their capital after spending several weeks below the former floor.
That behaviour could explain why silver has struggled near $66 despite its recovery from the June bottom. Previous support often becomes resistance after a breakdown because trapped holders sell once the price returns.
Elbaz’s view can be summarised through 3 main points:
- The silver price bottom may already be established.
- Resistance between $66 and $67 could be temporary.
- Failure to clear the barrier would weaken the bullish case.
Elbaz expects silver to move much higher if the current resistance breaks. However, he accepts that a prolonged failure near this area would require him to reassess the entire outlook.
Read Also: Ethereum Bullish Setup Is Taking Shape: Is This ETH Quiet Run-Up Before a New All-Time High?
Silver Price Support Levels Remain Important if the Breakout Fails
Silver still faces downside risk if buyers cannot overcome the $63 to $66 zone. The first support appears close to $63, followed by another level around $61.
A deeper pullback could return silver price toward the rising support line near $59. Stronger support remains around the June bottom between $55 and $57.
The clearest bullish outcome would involve a sustained close above $66 and a successful test of that area as support. Failure near the same barrier could keep silver trapped between $61 and $66 for longer.
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