ethereum price is consolidating above the $1,550 support against the US Dollar. eth could fall sharply if the bulls fail to protect $1,550 and $1,540.
- ethereum is struggling to start a recovery wave from $1,550.
- The price is trading below $1,585 and the 100 hourly simple moving average.
- Two bearish trend lines are forming with resistance near $1,565 and $1,590 on the hourly chart of eth/USD (data via Kraken).
- The pair could start a recovery wave if the bulls defend the $1,550 support zone.
ethereum price faces resistance
ethereum remained in a bearish zone below the $1,600 resistance zone. eth is still consolidating above the $1,550 support and showing bearish signs, like bitcoin.
The recent low was formed near $1,542 before the price started a consolidation phase. The price spiked once above the 23.6% Fibonacci retracement level of the key decline from the high of $1,665 to the low of $1,542, but the upside was limited.
ethereum is now trading below $1,585 and the 100 hourly simple moving average. Two bearish trend lines are also forming with resistance near $1,565 and $1,590 on the hourly chart of eth/USD.
On the upside, the price could face resistance near the $1,565 level and the first trend line. The first major resistance is near the second trend line, $1,590 and the 100 hourly simple moving average. The next resistance is near $1,600 or the 50% Fib retracement level of the key decline from the high of $1,665 to the low of $1,542.
<img class="alignnone size-full wp-image-555062" src="https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-9.png?resize=1024%2C468″ alt=”ethereum Price” srcset=”https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-9.png?resize=1024%2C468?w=1835 1835w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-9.png?resize=1024%2C468?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-9.png?resize=1024%2C468?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-9.png?resize=1024%2C468?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-9.png?resize=1024%2C468?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-9.png?resize=1024%2C468?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2023/10/ethereum-9.png?resize=1024%2C468?w=1140 1140w” />
Fountain: ETHUSD on TradingView.com
A clear move above the $1,600 resistance could start a short-term recovery wave. In the given case, Ether could rise and recover towards the resistance of $1,665. Any further gains could open the doors to a move towards $1,750.
More losses on eth?
If ethereum fails to overcome the $1,600 resistance, it could continue down. Initial support on the downside is near the $1,550 level. The next key support is $1,540.
A downside break below the $1,540 support could trigger another sharp drop. In the indicated case, the price could fall towards the $1,420 level. Any further losses could perhaps send Ether towards the $1,350 level.
Technical Indicators
MACD hourly – The MACD for eth/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for eth/USD is now below the 50 level.
Main Support Level: $1,540
Main resistance level: $1,600
