Ethereum price started a fresh decline from the $1,700 resistance against the US Dollar. ETH is showing bearish signs and might decline below $1,520.
- Ethereum gained bearish momentum and traded below $1,600.
- The price is now trading below $1,600 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,600 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down if it stays below the $1,600 resistance.
Ethereum Price Takes Hit
Ethereum price failed to surpass the $1,700 level and started a fresh decline, similar to bitcoin. ETH traded below the key $1,600 support zone to enter a short-term bearish zone.
The bears even pushed the price below the $1,550 support zone. It tested the $1,520 zone. A low is formed near $1,522 and the price is now consolidating losses. Ether price is now trading below $1,600 and the 100 hourly simple moving average.
There is also a major bearish trend line forming with resistance near $1,600 on the hourly chart of ETH/USD. An immediate resistance is near the $1,560 level. It is close to the 23.6% Fib retracement level of the downward wave from the $1,698 swing high to $1,522 low.
The next major resistance is near the $1,600 level or the trend line or the 50% Fib retracement level of the downward wave from the $1,698 swing high to $1,522 low.
Source: ETHUSD on TradingView.com
An upside break above the $1,600 resistance zone could start a decent increase. In the stated case, the price may perhaps rise towards the $1,655 resistance. Any more gains might send ether price towards the $1,700 resistance zone.
More Losses in ETH?
If ethereum fails to clear the $1,600 resistance, it could continue to move down. An initial support on the downside is near the $1,520 level.
The next major support is near the $1,465 zone. If there is a break below $1,465, the price might head lower towards the $1,420 support. Any more losses might call for a test of the $1,350 support zone.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,520
Major Resistance Level – $1,600