Ethereum started a downward correction below $1,600 against the US Dollar. ETH is down more than 6% and remains at risk of falling below the $1480 support.
- Ethereum is showing some bearish signs below the $1600 and $1580 levels.
- The price is now trading below $1,600 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rally if it sustains above the $1,500 and $1,480 support levels.
Ethereum price cuts gains
Ethereum price failed to clear the $1,650 Resistance Zone. ETH corrected lower below the $1,620 level and $1,600, similar to bitcoins. The decline gained pace below the 50% Fibonacci retracement level of the up move from the $1,480 low to $1,680 high.
The price declined more than 6% in one day and traded below the $1550 support zone. A low is formed near $1,518 and the price is now consolidating losses.
Ether price is now trading below $1,600 and the 100 hourly simple moving average. An immediate resistance is near the $1,555 level. It is close to the 23.6% Fibonacci retracement level of the recent drop from the $1680 high to $1518 low.
The next major resistance is near the $1,660 level. It is near the 50% Fib retracement level of the recent drop from the $1,680 high to $1,518 low. There is also a key bearish trend line forming with resistance near $1,620 on the hourly chart of ETH/USD.
Font: ETHUSD on TradingView.com
A bullish break above the $1,620 resistance zone could start a new rally. In the indicated case, the price perhaps rises towards the $1,680 resistance.
More losses in ETH?
If ethereum fails to clear the $1,600 resistance, it could continue moving lower. An initial support on the downside is near the $1,520 level or the recent low.
The next major support is near the $1,480 level. If there is a break below $1480, the price could drop towards the $1420 support. Further losses could require a test of the $1,350 area.
technical indicators
MACD per hour – The MACD for ETH/USD is now gaining momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major Support Level: $1,480
Highest Resistance Level: $1,600
