Ethereum price is slowly falling towards the support at $1,585 against the US dollar. ETH needs to overcome the USD 1,650 resistance to start a recovery wave.
- Ethereum is struggling to stay above the $1,600 support zone.
- The price is trading below $1,650 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $1,645 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new rise if it overcomes the USD 1,650 and USD 1,665 resistance levels.
Ethereum price drops lower
Ethereum attempted a recovery wave from the $1,630 zone. ETH climbed above the $1,650 resistance level, but the upside was limited, just like Bitcoin.
The price struggled to gain pace for a move above the USD 1,665 resistance level. A high was formed around $1,654 and the price responded to the downtrend. It fell below the $1,620 support and even traded close to the $1,600 level. A low is formed near USD 1,607 and the price is now consolidating losses.
Ethereum is now trading below $1,650 and the 100-hourly Simple Moving Average. There is also a major bearish trendline forming with resistance around $1,645 on the hourly chart of ETH/USD.
On the upside, the price could encounter resistance near the USD 1,630 level. It is close to the 50% Fib retracement level of the recent decline from the $1,654 swing high to the $1,607 low. The next major resistance is $1,650, the trendline and the 100-hour Simple Moving Average.
The trendline is close to the 76.4% Fib retracement level of the recent decline from the $1,654 swing high to the $1,607 low. A close above the USD 1,650 resistance could send the price towards the key resistance at USD 1,665.
Source: ETHUSD on TradingView.com
To start a steady increase, Ether needs to settle above the USD 1,650 and USD 1,665 levels. The next major resistance could be $1,720. Any gains could open the doors for a move towards $1,750.
Lose more in ETH?
If Ethereum fails to clear the USD 1,650 resistance, it could continue to decline. The initial downside support is near the $1,610 level. The next major support is at USD 1,600.
The first major support is now near $1,585. A downside break below the $1,585 support could trigger another strong decline. In the mentioned case, the price could fall towards the USD 1,540 level. Any further losses could perhaps send Ether towards the $1,500 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $1,585
Major resistance level – $1,665