ethereum price is struggling to stay above the $1,550 support against the US Dollar. eth could take a hit if it settles below $1,550 and then $1,540.
- ethereum is showing bearish signs and struggling to break above $1,600.
- The price is trading below $1,600 and the 100 hourly simple moving average.
- A major bearish trend line is forming with resistance near $1,600 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 struggles
ethereum failed to start a recovery wave above the $1,600 resistance zone. eth remained in a bearish zone and extended its decline towards $1,550, just like bitcoin.
It seems that the bears already tried to close below the $1,550 support zone. A new low was formed near $1,542 and the price is now consolidating losses. The price has returned above the $1,550 level but is still showing strong bearish signs.
ethereum is now trading below $1,600 and the 100 hourly simple moving average. Furthermore, a major bearish trend line is forming with resistance near $1,600 on the hourly chart of eth/USD.
On the upside, the price could face resistance near the $1,570 level. It is close to the 23.6% Fib retracement level of the downward move from the high of $1,664 to the low of $1,542. The first major resistance is near the trend line and $1,600 or the 100 hourly simple moving average.
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Fountain: ETHUSD on TradingView.com
The 50% retracement level of the downward move from the high of $1,664 to the low of $1,542 is also near the trend line. The next major resistance is $1,620, 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 main resistance at $1,750. Any further gains could open the doors to a move towards $1,880.
Downside breakout in 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 start another sharp decline. In the indicated case, the price could revisit the $1,480 level. Any further losses could perhaps send Ether towards the $1,420 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
