Ethereum extended its losses and tested the $1,550 area against the US Dollar. ETH could pick up speed if there is a clear move above the $1,650 resistance.
- Ethereum started a bearish correction and traded below the $1,650 level.
- The price is now trading below $1,650 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,660 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move lower if there is a clear breakout below the $1550 support level.
Ethereum price increases losses
Ethereum remains in descending zone Below the $1700 level. ETH settled even below the $1,650 support area to move into a short-term descending zone.
There was a clear move below the $1600 support level. Finally, the ether price tested the $1550 level. It remained stable above the 50% Fib retracement level of the main wave from the $1,355 swing low to $1,785 high. The price is now trading below $1,650 and the 100 hourly simple moving average.
There is also a major bearish trend line forming with resistance near $1,660 on the hourly chart of ETH/USD. There is immediate resistance on the upside near the $1,650 level and Simple moving average per 100 hours.
Source: ETHUSD on TradingView.com
The first major resistance is near the trend line at the $1,670 level. A clear move above the $1,670 level could push the price towards $1,700. If the bulls continue to move, the price could rise towards the $1750 or even $1,780 resistance area.
More losses in ETH?
If Ethereum fails to rise above the resistance level at $1,670, it may continue to decline. There is initial support on the downside near the $1.570 region.
The next major support is near $1,550, below which there is a risk of a sharp decline. In the aforementioned case, the price of Ether may drop towards the $1,520 support level in the near term. It is near the 61.8% Fib retracement level of the main wave from the swing low of $1,355 to the high of $1,785. Any further losses may require a test of the $1450 level.
MACD per hour – ETH/USD’s MACD is losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now approaching the 50 level.
Key Support Level – $1,570
Key Resistance Level – $1,670