Ethereum fell below the $1600 resistance to the US Dollar. ETH is moving lower, and should remain above $1540 in order to move higher.
- Ethereum was unable to overcome the resistances levels of $1,620 or $1,625
- Today, the price traded at close to $1550. The 100-hourly simple moving average is currently in place.
- The hourly chart for ETH/USD shows a rising channel with support close to $1,540. (Data feed via Kraken).
- If the pair remains above $1,540 or $1,500, it could see another rise.
Ethereum price remains supported
Ethereum tried to break the $1620 mark, but failed. The price began to fall after the bears appeared near $1,620.
Near $1,619 was the high before the market corrected lower. Below the $1,560 price level and 100 hourly simple moving mean there was a decline. The bulls were still active at the $1530 and $1525 levels. An area of low volatility was found near $1530, and prices are now consolidating.
The 100-hourly simple moving average and $1,550 were both higher than the previous swing high. The recent fall from $1.619 swing highs to $1.530 lows saw the price rise above 50% Fib retracement.
The 100-hourly simple moving average and $1,550 are now the support levels. A major rising channel is also emerging with support at $1,540 in the hourly chart for ETH/USD. The resistance is near $1,580, $1,585 and the $1,585 levels.
Also, the fib retracement level at 61.8% of the recent fall from the $1.619 swing high and $1.530 low is close to the $1.585 level. Near the $1,620 mark is where you will find the next significant resistance.
Source: TradingView.com, ETHUSD
If the price moves clear above the $1620 resistance level, it could lead to $1650 resistance. In the short term, any further gains could open up the possibility of a test at the $1700 resistance.
New Decline in the ETH
Ethereum could fall further if it fails to surpass the $1,585 resistance. Initial support is located near the $1540 zone and channel trend lines.
Below $1,500 the nearest major support. If below, bearish momentum could be seen. The price could fall towards $1,425 in the above scenario. The price could drop further towards $1,380 should there be more losses.
Technical Indicators
Minutely MACD – MACD is currently losing momentum for the bullish area of ETH/USD.
Hourly RSI – The RSI is currently below 50 for Ethereum/USD.
Major Support Level – $1,540
Major Resistance Level – $1,585