Ethereum once again failed to stabilize above the $1,620 region against the US dollar. ETH is dropping and may struggle to stay above the $1480 support.
- Ethereum started another decline after there was a false breakout above $1,620.
- The price is now trading below $1,560 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $1,500 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new rally unless there is a clear move below the support level at $1480.
Ethereum price tests major support
Ethereum has made another attempt to clear Resistance area $1,620. ETH even rose above the $1,640 and $1,650 levels. However, the bears have been active near the $1,660 level.
A high formed near $1,662 and the price started a new decline. There was a bearish breakout below the $1,560 and $1,550 levels. Ether price fell below the 50% Fib retracement level of the upward move from the swing low of $1,488 to the high of $1,662.
The price is now trading below $1,560 and Simple moving average per 100 hours. It is also trading below the 76.4% Fib retracement level of the upward move from the swing low of $1,488 to the high of $1,662.
However, it is still above the $1500 support. Besides, there is a major bullish trend line forming with support near $1,500 on the hourly chart of ETH/USD. There is an immediate resistance on the upside near the $1,530 level. The first major resistance is near the $1550 area and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The main breakout area is now forming near the $1,620 area. A clear move above the $1,620 level could start with a decent rally. The next major barrier is near the $1,660 level, above which the price may rise towards the $1,700 resistance area.
More losses in ETH?
If Ethereum fails to rise above the $1,550 resistance level, it may continue to decline. There is initial support on the downside near the $1500 area and the trendline.
A clear move below trendline support could push the price towards the $1480 support area. Any further losses could push the price of ether to the $1,400 support level.
MACD per hour – ETH/USD’s MACD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Key Support Level – $1,480
Key Resistance Level – $1550