The Ethereum price failed to rise above $1,650, paring gains against the US dollar. ETH is now trading in a bearish zone and could fall heavily.
- Ethereum peaked near $1,670 and started a new decline.
- The price is trading below $1,650 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bearish momentum if it closes below $1,600 and $1,580.
Ethereum price turns red
Ethereum price attempted to make a fresh rise above the USD 1,620 pivot level. ETH even broke the USD 1,650 resistance, but the bears were active around the USD 1,670 level.
As a result, the price could not rise further and started a new decline below $1,650, just like Bitcoin. There was a downside break below the $1,620 level and the 100-hourly Simple Moving Average. The price even retested the $1,600 support zone.
A low is formed near USD 1,600 and the price is now consolidating losses. Ether is now trading below $1,650 and the 100-hour Simple Moving Average. Additionally, a major bearish trendline is forming with resistance near $1,620 on the hourly chart of ETH/USD. The trendline is close to the 23.6% Fib retracement level of the downward move from the $1,669 swing high to the $1,600 low.
On the upside, the price could encounter resistance near the USD 1,620 level and the trendline. The next resistance is near the $1,635 level or the 50% Fib retracement level of the downward move from the $1,669 swing high to the $1,600 low.
Source: ETHUSD on TradingView.com
The first major resistance is near USD 1,650, above which the price could rise towards the USD 1,670 level. The next major hurdle is near the USD 1,700 level. A close above the $1,700 level could send Ethereum further higher towards $1,750.
Disadvantage Break in ETH?
If Ethereum fails to clear the USD 1,620 resistance, it could trigger another decline. The initial downside support is near the USD 1,600 level.
The first major support is close to $1,580. The next major support is at USD 1,540. A downside break below $1,540 could trigger a big drop towards $1,450. If there is a downside break below USD 1,450, the price could test the USD 1,320 support level.
Technical indicators
hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $1,600
Major resistance level – $1,650