Ethereum price struggled to clear $1,660 and responded to the downtrend against the US dollar. ETH remains at risk of more losses if it breaks the USD 1,550 support.
- Ethereum resumed its decline and retested the USD 1,550 support.
- The price is trading below $1,600 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $1,610 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could accelerate lower if there is a close below the $1,550 support zone.
Ethereum price plunges again
Ethereum failed to move above the USD 1,665 resistance zone. ETH started a fresh decline from the USD 1,665 resistance zone and dipped below the USD 1,650 level.
The bears pushed the price below the $1,600 level and the 100-hourly Simple Moving Average. Ether retested the USD 1,550 support. A low was formed near USD 1,549 and the price is now trying to make a recovery wave. There was a move above the 23.6% Fib retracement level of the recent decline, from the $1,664 swing high to the $1,549 low.
Ethereum is now trading below $1,600 and the 100-hourly Simple Moving Average. There is also a major bearish trendline forming with resistance around $1,610 on the hourly chart of ETH/USD.
On the upside, the price could encounter resistance near the USD 1,600 level. The first major resistance is near the trendline and $1,610. It is close to the 50% Fib retracement level of the recent decline from the $1,664 swing high to the $1,549 low.
Source: ETHUSD on TradingView.com
The next major resistance is $1,620 or the 100-hour Simple Moving Average, above which the price could rise towards the $1,665 resistance zone. A close above the resistance at $1,665 could send the price towards the key resistance at $1,750. The next major resistance could be $1,820. Any further gains could open the doors for a move towards $1,880.
Disadvantage Break in ETH?
If Ethereum fails to clear the USD 1,600 resistance, it could continue to decline. The initial downside support is near the $1,565 level. The next major support is at USD 1,550.
A downside break below the USD 1,550 support could trigger another strong decline. In the mentioned case, the price could reach the $1,465 level again. Any further losses could perhaps send Ether towards the $1,420 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $1,550
Major resistance level – $1,620