Ethereum Price is Dropping, But It’s Too Early to Say Bulls Have Given Up
Ethereum price extended its decline below the $1,520 level against the US Dollar. ETH must clear the $1,540 resistance zone to start a decent increase.
- Ethereum remained in a bearish zone below $1,550 and $1,540.
- The price is now trading below $1,540 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,515 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down if it stays below the $1,540 resistance.
Ethereum Price Faces Resistance
Ethereum price remained in a bearish zone below the $1,600, similar to bitcoin. ETH traded below the $1,550 and $1,540 support levels. It even spiked below the $1,500 level.
A new weekly low is formed near $1,463 and the price is now consolidating losses. Ether price is struggling below $1,540 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $1,515 on the hourly chart of ETH/USD.
Recently, there was a minor upside correction above the $1,500 level. The price tested the 50% Fib retracement level of the recent decline from the $1,548 swing high to $1,463 low.
The next major resistance is near the $1,515 level and the trend line, above which the price might test the 100 hourly SMA. The trend line is near the 61.8% Fib retracement level of the recent decline from the $1,548 swing high to $1,463 low. The main resistance is still near the $1,540 zone.
Source: ETHUSD on TradingView.com
An upside break above the $1,540 resistance zone could start a steady increase. In the stated case, the price may perhaps rise towards the $1,600 resistance.
More Losses in ETH?
If ethereum fails to clear the $1,515 resistance or the trend line, it could continue to move down. An initial support on the downside is near the $1,475 level.
The next major support is near the $1,460 zone. If there is a break below $1,460, the price might continue to drop and move towards the $1,400 support. Any more losses might call for a test of the $1,320 support zone.
Technical Indicators
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 – $1,460
Major Resistance Level – $1,540
