Ethereum price found support near $1,540 against the US Dollar. ETH is consolidating losses and might attempt a recovery wave above $1,580.
- Ethereum started a major decline below the $1,620 zone.
- The price is trading below $1,600 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $1,570 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but upsides might be limited above the $1,600 level.
Ethereum Price Faces Resistance
Ethereum price found support near the $1,540 zone after a major decline. ETH traded as low as $1,542 and recently started a consolidation phase, similar to bitcoin.
There was a minor increase above the $1,560. The price spiked above the 50% Fib retracement level of the downward wave from the $1,677 swing high to $1,542 low. However, ether price is still trading below $1,600 and the 100 hourly simple moving average.
There is also a key contracting triangle forming with resistance near $1,570 on the hourly chart of ETH/USD. On the upside, the price is facing resistance near the $1,570 zone.
The first major resistance is near the $1,580 zone. The next major resistance is near the $1,600 level. It is near the 50% Fib retracement level of the downward wave from the $1,677 swing high to $1,542 low, above which the price might rise steadily. The next major resistance is near the $1,640 zone.
Source: ETHUSD on TradingView.com
A close above the $1,640 resistance zone might start a fresh rally. In this case, the price may perhaps rise towards the $1,670 level.
Fresh Decline in ETH?
If ethereum fails to clear the $1,580 resistance, it could continue to move down. An initial support on the downside is near the $1,550 level.
The next major support is near the $1,540 zone. If there is a break below $1,540, the price might retest $1,500. Any more losses might call for a test of the $1,420 level.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,540
Major Resistance Level – $1,580