Ethereum started the decline below $1,600 against the US dollar. ETH is down 6% and remains at risk of falling below the $1,480 support.
- Ethereum is showing some bearish signs below the $1,600 and $1,580 levels.
- The price is now trading below $1,600 and the 100 hourly simple moving average.
- A key bearish trend is forming with resistance near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may recover if it remains above the $1,500 and $1,480 support levels.
Ethereum prices rise
Ethereum failed to clear the price $1,650 resistance zone. ETH corrected below the $1,620 and $1,600 levels, respectively Bitcoin. The decline gained momentum below the 50% Fib retracement level of the upside move from the $1,480 swing low to the $1,680 high.
The price fell more than 6% on the day and traded below the $1,550 support zone. A low is formed near $1,518 and the price is now consolidating losses.
Ether is now trading below $1,600 and the 100 hourly simple moving average. An immediate resistance is near the $1,555 level. This is close to the 23.6% Fib retracement level of the recent decline from the $1,680 swing high to the $1,518 low.
The next major resistance is near the $1,660 level. This is close to the 50% Fib retracement level of the recent decline from the $1,680 swing high to $1,518. There is also a key bearish trend with resistance near $1,620 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
An upside break above the $1,620 resistance zone could start a new rally. In the described scenario, the price might move towards the $1,680 resistance.
More losses in ETH?
If Ethereum fails to clear the $1,600 resistance, it could move lower. Initial support on the downside is near the $1,520 level or recent lows.
The next major support is near the $1,480 level. If there is a break below $1,480, the price could fall towards the $1,420 support. Further losses could call for a test of the $1,350 zone.
Technical indicators
Hourly MACD – The MACD for ETH/USD is now gaining strength in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Key support level – $1,480
Key resistance level – $1,600
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