What Could Trigger A Sharp Decline?


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.

Ethereum price

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.

Technical Indicators

MACD per hourETH/USD’s MACD is losing momentum in bearish territory.

Hourly RSIThe RSI for ETH/USD is now approaching the 50 level.

Key Support Level – $1,570

Key Resistance Level – $1,670



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