Ethereum is fighting back to clear the $1,640 resistance against the US Dollar. ETH corrected lower and remains at risk of a move below the $1,550 support.
- Ethereum is slowly falling below the $1,620 and $1,600 levels.
- The price is currently trading below $1,600 and the hourly simple moving average is 100.
- There is a key contract triangle formed with resistance near $1,590 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could start another decline if there is a clear move below the $1,550 support.
The price of Ethereum is down again
Ethereum price started a reasonable increase above the $1,600 pivot level. ETH tried to break a new rise above the $1,640 resistance zone, but the bears protected another rise.
A high was formed near $1,639 and the price started a downside correction. There is a move below the $1,600 level and the hourly simple moving average of 100. The price declined below the 50% Fib retracement level of the new leg from the $1,518 swing to the $1,639 high.
However, bulls are active near the $1,550 support zone. The price remained above the 61.8% Fib retracement level of the recent leg from the $1,518 swing to the $1,639 high.
The price of ether is currently trading below $1,600 and the hourly simple moving average is 100. Immediate resistance is near the $1,590 level. There is also a key contracting triangle forming with resistance near $1,590 on the ETH/USD hourly chart.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,640 level. A break above the $1,640 resistance zone can start a decent increase. In that case, the price may rise towards the $1,720 resistance.
More Losses in ETH?
If ethereum fails to clear the $1,600 resistance, it could continue to decline. Initial support on the downside is near the $1,550 level or the lower trend line of the triangle.
The next major support is near the $1,520 level. If there is a break below $1,520, the price could drop to the $1,450 support. Further losses may require a retest of the $1,365 zone in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Key Support Level – $1,550
Major Resistance Level – $1,600