Ethereum began a downtrend against the US dollar at $1,630. If ETH falls below the $1480 support, it may sustain further losses.
- Ethereum underwent a downtrend starting from $1,630.
- The current price trades below $1,500. It is also close to the simple moving average of 100 hours.
- The hourly chart for ETH/USD shows a bullish trend line with support close to $1,480. (Data feed via Kraken).
- If the pair breaks $1,480 support, it could continue its downward correction.
The Correction of the Ethereum Price
Ethereum tried another rise above the $1600 resistance level. ETH did not gain momentum above the $1,600 resistance zone. There was therefore a correction to the downside below $1,550.
Below the $1,520 resistance level, Ether prices corrected slightly. The key rise from $1,325 swing high to $1,632 low was broken below 23.6% Fib resistance. Today, the price traded below $1,500. It is also close to 100 hourly simple moving Average.
Now, it is approaching the $1,480 support level. A key bullish trendline is also visible on the hourly charts of Ethereum/USD. It has support close to $1,480.
Near the $1,520 mark is an immediate resistance to the upside. It is located near the $1.560 area. Now, the breakout zone is located near the $1600 level. Another major rise could be possible if the level is moved above $1,600.
Source: TradingView.com, ETHUSD
Near the $1,630 mark is the next barrier. Above which price may gain strength to reach the $1.700 resistance zone.
Are There More Losses in Ethereum?
The $1,560 resistance could be broken and ethereum may continue its downward slide. The trend line and $1,480 are the initial supports for the downside.
Near the 50% Fib Retracement level for the important increase in price from $1.325 swing low to high, the trend line is close to the trend line. Price could move towards $1,375 support if it moves below trendline support. A further drop below the trend line support could push the price lower than $1,280.
Technical indicators
Minutely MACD – In the bearish zone, momentum is being gained by MACD for USD/ETH.
Hourly RSI – The RSI is currently below the 50 level for Ethereum/USD.
Major Support Level – $1,480
Major Resistance Level – $1,560
