Ethereum failed to test $1,700 and started a major decline against the US Dollar. ETH declined over 7% and there was a move below the $1,540 support.
- Ethereum started a major decline below the $1,600 and $1,540 support levels.
- The price is now trading below $1,600 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $1,570 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $1,500 support to avoid more losses in the near term.
Ethereum Trimmed Gains
Ethereum climbed above the $1,620 and $1,650 resistance levels. However, ETH failed to test the $1,700 resistance zone. A high was formed near the $1,686 level and there was a sharp bearish wave, similar to bitcoin.
The price declined below the $1,620 and $1,600 support levels. There was a break below a major bullish trend line with support near $1,570 on the hourly chart of ETH/USD. The pair even broke the $1,540 support level and the 100 hourly simple moving average.
Ether price spiked below the $1,500 level and a low is formed at $1,490. It is now consolidating losses above the $1,500 level. An immediate resistance on the upside is near the $1,520 level.
The next major resistance is now forming near the $1,540 level. It is near the 23.6% Fib retracement level of the recent decline from the $1,686 swing high to $1,490 low. A clear move above the $1,540 level might push the price towards the $1,565 level.
Source: ETHUSD on TradingView.com
The next major resistance sits near the $1,585 level. It is near the 50% Fib retracement level of the recent decline from the $1,686 swing high to $1,490 low. Any more gains may perhaps open the doors for a move towards the $1,620 resistance in the near term.
More Losses in ETH?
If ethereum fails to rise above the $1,540 resistance, it could continue to move down. An initial support on the downside is near the $1,500 zone.
The next major support is near $1,480. A close below the $1,480 level might send ether price towards $1,420. Any more losses may perhaps push the price towards the $1,350 zone.
Technical Indicators
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 40 level.
Major Support Level – $1,500
Major Resistance Level – $1,540
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