Ethereum price extended its decline below the USD 1,550 support against the US dollar. ETH recovers the losses, but the gains may be limited to $1,620.
- Ethereum gained bearish momentum below USD 1,580 and USD 1,550.
- The price is trading below $1,600 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $1,605 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but the bears could remain active near USD 1,600 and USD 1,620.
Ethereum price collapses
Ethereum price failed to move above the USD 1,620 pivot level. ETH started a new decline and, like Bitcoin, fell below the $1,600 level.
There was a decline below the USD 1,580 and USD 1,550 levels. It retested the $1,530 zone. A low has formed near USD 1,530 and the price is now correcting losses. There was a small increase above the USD 1,550 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $1,670 swing high to the $1,530 low.
Ether is now trading below $1,600 and the 100-hour Simple Moving Average. Additionally, a major bearish trendline is forming with resistance around $1,605 on the hourly chart of ETH/USD.
On the upside, the price could face resistance near the $1,600 level or the 50% Fib retracement level of the downward move from the $1,670 swing high to the $1,530 low. The next resistance is near the $1,605 level or trendline.
Source: ETHUSD on TradingView.com
The first major resistance is near USD 1,620, above which the price could rise towards the USD 1,650 level. The next major hurdle is near the USD 1,670 level. A close above the USD 1,670 level could send Ethereum further higher towards USD 1,750.
Another drop in ETH?
If Ethereum fails to clear the USD 1,600 resistance, it could trigger another decline. The initial downside support is near the $1,550 level.
The first major support is close to $1,530. The next major support is at USD 1,500. A downward break below $1,500 could lead to more bearish moves. In the mentioned case, there could be a decline towards the USD 1,440 level in the short term.
Technical indicators
hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $1,530
Major resistance level – $1,620
