Ethereum price declined sharply below $1,600 against the US Dollar. ETH revisited the $1,535 support and the price might start an upside correction.
- Ethereum started a major decline from the $1,665 resistance zone.
- The price is trading below $1,600 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $1,625 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but the bears might be active near the $1,600 zone.
Ethereum Price Drops Over 5%
Ethereum price started a major decline from the $1,665 resistance zone. ETH declined heavily below the $1,620 and $1,600 support levels, similar to bitcoin.
The price is down over 5% and there was a spike below $1,550. There was also a break below a major bullish trend line with support near $1,625 on the hourly chart of ETH/USD. A low is formed near $1,542 and the price is now consolidating losses.
The price is now trading near the 23.6% Fib retracement level of the downward move from the $1,677 swing high to $1,542 low.
Ether price is now trading below $1,600 and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $1,590 zone. The first major resistance is near the $1,600 zone. It is near the 50% Fib retracement level of the downward move from the $1,677 swing high to $1,542 low, above which the price might rise steadily. The next major resistance is near the $1,625 zone.
Source: ETHUSD on TradingView.com
A close above the $1,625 resistance zone might start a fresh rally. In this case, the price may perhaps rise towards the $1,665 level.
Fresh Decline in ETH?
If ethereum fails to clear the $1,600 resistance, it could continue to move down. An initial support on the downside is near the $1,550 level.
The next major support is near the $1,535 zone. If there is a break below $1,535, the price might retest $1,500. Any more losses might call for a test of the $1,420 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 30 level.
Major Support Level – $1,535
Major Resistance Level – $1,600
