Ethereum Dives Below $1,500, Why Recovery Could Be Capped

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Ethereum began a significant decline below $1,600 against the US Dollar. ETH fell below $1,500. Any recovery may be difficult.

  • Ethereum continued to fall below $1,600 and $1.500 levels.
  • The current price trades below $1,500 as well as the simple 100-hour moving average.
  • On the hourly chart for ETH/USD, there is a bearish trendline that forms with resistance at $1,480 (data feed via Kraken).
  • However, the upsides to this pair might not be as high as $1,500.

Ethereum price hits

Ethereum did not gain momentum above $1,660 or $1,675 resistance levels. ETH traded lower than the critical $1,600 support area and began a decline.

This opened up the possibility of a lower move than the $1,550 or $1,500 support levels. Even though Ether Price settled lower than the $1,500 and 100 hourly moving averages, it was still below the $1.500 levels. An area near $1,423 was the lowest point and now the price is correcting its losses.

Near the $1,460 mark is an immediate resistance to the upside. Near the $1,480 mark is currently the first significant resistance. This is close to the 23.6% Fib level of the decline from $1,707 swing high, $1,423 low.

On the hourly chart for ETH/USD, there is a bearish trend line that forms with resistance at $1,480. Near the $1,540 mark and the 100-hourly moving average is the next significant resistance.

Ethereum Price

Source: TradingView.com, ETHUSD

Also, the Fib retracement of the recent fall from the $1.707 swing high and $1.423 low at 50% is close to the $1.565 level. The price could move towards the $1,600 level if it moves clear above the $1.565 threshold. A test of $1,650 might be possible if there are more gains.

What Are the Losses of ETH More?

It could fall further if it fails to climb above $1,480. The $1,425 area is the initial support for the downside.

Near $1,400 is the next support level, and below that price could accelerate downwards. The price could fall towards $1,320 in the above scenario. The price could fall further towards $1,250 if there are more losses.

Technical indicators

Minutely MACDMACD of ETH/USD has lost momentum and is currently in the bearish zone.

Hourly RSIThe RSI is currently below the 50 level for Ethereum/USD.

Major Support Level – $1,425

Major Resistance Level – $1,480

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