Ethereum failed to stay above $1,650 and extended losses against the US Dollar. ETH might continue to move down towards the $1,500 support zone.
- Ethereum started a downside correction after it settled below the $1,700 level.
- The price is now trading below $1,650 and the 100 hourly simple moving average.
- There was a break below a declining channel with support near $1,610 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down towards the $1,550 support or even $1,500.
Ethereum Price Extends Decline
Ethereum failed to stay above the $1,700 level and started a downside correction. ETH moved below the $1,660 and $1,650 support levels to enter a short-term bearish zone.
There was a clear move below the 23.6% Fib retracement level of the upward move from the $1,356 swing low to $1,785 high. Besides, there was a break below a declining channel with support near $1,610 on the hourly chart of ETH/USD.
Ether price is now trading below $1,650 and the 100 hourly simple moving average. It seems like the price might continue to move down, with an immediate support at $1,570.
An immediate resistance on the upside is near the $1,600 level and the broken channel support zone. The first major resistance is near the $1,665 zone and the 100 hourly simple moving average. The main resistance is now forming near the $1,680 zone.
Source: ETHUSD on TradingView.com
A clear move above the $1,680 level could even pump the price to $1,720. In the stated case, the price may perhaps rise towards the $1,750 resistance zone or even $1,780.
More Losses in ETH?
If ethereum fails to rise above the $1,680 resistance, it could continue to move down. An initial support on the downside is near the $1,570 zone.
The 50% Fib retracement level of the upward move from the $1,356 swing low to $1,785 high is also near the $1,570 level. The next major support is near $1,520, below which there is a risk of a sharp decline. In the stated case, ether price may perhaps decline towards the $1,400 support in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now moving in the oversold zone.
Major Support Level – $1,570
Major Resistance Level – $1,680
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Author: Aayush Jindal