After the Fed rate change against the US Dollar, Ethereum continued its slide. ETH has reached $1,500 support. It is now correcting its losses.
- Ethereum fell below the $1550 support zone, and it tested $1500.
- The current price trades below $1,580.
- On the hourly chart for ETH/USD, there is resistance at $1,580. This line of bearishness can be seen (data feed via Kraken).
- Bullish momentum could be gained if the pair can clear $1,580 resistance and $1,600 support levels.
Ethereum price eyes increase
Ethereum was unable to move higher than the $1,600 resistance area. ETH traded lower after Fed raised rates by 75bps and corrected to trade below $1,550 support.
The support zone of $1,500 was reached by the price. An area near the $1.501 level has seen a low and now the price is correcting its losses. The price moved above $1,520, $1,540, and the $2,560 levels. Above the 23.6% Fib Retracement Level of the recent drop from $1,619 swing low to $1.501 high, Ether prices corrected.
Today’s price trades below $1,580. This is also lower than the 100-hourly simple moving average. The hourly chart shows a significant bearish trend line with resistance close to $1,580.
The immediate resistance to the upside lies near the $1,560 and 100-hourly simple moving average levels. This is near the Fib retracement of 50% the decline from $1,619 high to $1,501 lowest. It is close to the $1,580 mark and the bearish trendline.
Source: TradingView.com ETHUSD
If the price breaks above the bearish trendline, then the $1,600 level could signal a significant increase. The price may rise as high as $1,650 in the above scenario. The price could reach the $1,700 resistance level with any additional gains.
Is there a new decline in ETH?
It could begin a new decline if it fails to rise above $1,580. Initial support is at the $1,525 area.
At the $1500 level, there is the initial major support. Selling pressure could increase if the price falls below $1,500. According to the scenario above, the price might fall toward the $1,420 support area in the immediate term.
Technical Indicators
Hourly MACD – MACD for USD/ETH is losing momentum now in the bearish area.
Hourly RSI – The RSI of ETH/USD has risen to above 50.
Major Support Level – $1,500
Major Resistance Level – $1,580
