Ethereum started a major decline below the $1,600 zone against the US Dollar. ETH even declined below $1,500 and now any recovery could face hurdles.
- Ethereum extended its drop below the $1,600 and $1,500 levels.
- The price is now trading below $1,500 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,480 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but upsides might be limited above $1,500.
Ethereum Price Takes Hit
Ethereum failed to gain pace above the $1,660 and $1,675 resistance levels. ETH started a fresh decline and traded below the key $1,600 support zone.
It opened the doors for a move below the $1,550 and $1,500 support levels. Ether price even settled below the $1,500 level and the 100 hourly simple moving average. A low was formed near the $1,423 level and the price is now correcting losses.
An immediate resistance on the upside is near the $1,460 level. The first major resistance is now forming near the $1,480 level. It is near the 23.6% Fib retracement level of the recent decline from the $1,707 swing high to $1,423 low.
There is also a key bearish trend line forming with resistance near $1,480 on the hourly chart of ETH/USD. The next major resistance is near the $1,540 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the $1,707 swing high to $1,423 low is also near the $1,565 level. A clear move above the $1,565 level might send the price towards $1,600 resistance. Any more gains may perhaps open the doors for a test of the $1,650 resistance.
More Losses in ETH?
If ethereum fails to rise above the $1,480 resistance, it could continue to move down. An initial support on the downside is near the $1,425 zone.
The next major support is near $1,400, below which ether price might accelerate lower. In the stated case, the price may perhaps decline towards the $1,320 level. Any more losses may perhaps send the price towards the $1,250 level.
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 50 level.
Major Support Level – $1,425
Major Resistance Level – $1,480